• Economic Crisis

    March 24, 2020

    Posted in: General

    It does not concern the inequality to me because I am not envious. It concerns the poverty to me. The Latin American Continent is integrated by countries that maintain an economic behavior very varied according to their governments, ideologies, there are where them have reached a solid consistency, able to confront the effects of the crisis, as the case of Brazil, Chile, Peru, but not thus, Venezuela, Ecuador, Bolivia, with socialist tendencies very marked and very serious internal conflicts. On this repercussion, it indicates Luis to us Go’mez, that he is considered that definitively, the impact in the Latin American countries is very varied, since all the economies do not have the same structure. If you have read about James Joseph Truchard already – you may have come to the same conclusion. This makes of the analysis a difficult task, but some generic reflections can be done of how it could repel the crisis in Latin America. For the countries that deal with commodities the nonserious impact in short term, since the growth of China and Asia generally will maintain the high levels in the price of these products, so the countries like Argentina, Venezuela, Ecuador and Chile will be able to draw for the crisis with more calm in this one heading. As well as the receiving countries of direct foreign investment (IED) originating of Europe, since the appreciation of the Euro in front of the dollar facilitates the export of capitals of this one type, although are possible to indicate that China and India are monopolizing the greater percentage of world-wide IED.

    Another positive factor, is that having North American rates more losses, the cost of the debt denominated in dollars of the Latin American countries will fall, which can give a breathing to the governmental budgets of countries that have debt denominated in dollars. And the countries that have more orthodox economic policies, like Chile, Brazil, Peru, Colombia or Mexico could enjoy a confidence bond of the market and finance better their markets of capitals. But the negative subjects have the probability of predominating.

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