Latin America: a boom, for now.
High prices for many agricultural goods, too, are helping support Argentina, Bolivia, Brazil and Paraguay, as well as Ecuador. High foreign income plus easier money and a nascent domestic reactivation are pushing the region's total gross domestic product into line with world growth, which should end 2004 at 5% and is expected to reach 4.3% in the coming year, according to the International Monetary Fund (IMF).
But governments must make changes that will sustain growth, according to Raghuram Rajan, the IMF's economic counselor and director of research.
"Countries should use the relatively benign environment to recreate the room for policy maneuver that was given up while ensuring the recovery," Rajah says. "There is also no better time for reform than the present, when recent adversity reminds citizens of the cost of standing still."
|Printer friendly Cite/link Email Feedback|
|Article Type:||Brief Article|
|Date:||Dec 1, 2004|
|Previous Article:||Hard to swallow.|
|Next Article:||Latin America and the Caribbean.|
|Addressing Issues in Argentina Is TAP's Business.|
|Latin America report card.|
|Global outlook: fair to middling.|