Summary
Latin American governments had recently argued that their structural reforms and prudent fiscal policies would shield them from external shocks. Yet when global financial markets took a nosedive in October, the region's leaders saw there were holes in their armor. After the Latin American market bloodbath, however, analysts still agree the region is better suited than ever to minimize the pain and get back on its feet. With governments moving quickly to launch emergency measures to stem the bleeding, market analysts are now left to speculate whether or not the worst is now over. Manuel Lasaga, president of StratInfo, a Miami-based economic consultancy, feels a US recession will dampen Latin American growth as of first-half 2009. Latin America's stronger economic standing has made the situation more tolerable. The Inter-American Development Bank established a $6 billion liquidity facility with fast approval to support Latin American countries.
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Extract
Caught in the Crunch
Latin American governments had recently argued that their structural reforms and prudent fiscal policies would shield them from external shocks. Yet when global financial markets took a nosedive in October, the region's leaders saw there were holes in their armor. After the Latin American market bloodbath, however, analysts still agree the region is better suited than ever to minimize the pain and get back on its feet.
On October 6 the region's stock markets suffered a meltdown, with indexes posting sha...See the full content of this document
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