Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. Latin America's Reaction to the CrisisThe Council on Hemispheric Affairs (COHA) has put out a nice summary of the various responses by Latin American governments to the global economic meltdown.As the G-20 meeting is about to begin in London, the outlook for Latin American growth in 2009 is grim, as the tempo of foreign direct investment (FDI) and loans stand-by credits and development funds plummet, the demand for commodities diminish, and foreign remittances plunge.The World Bank vice president for Latin America and the Caribbean, Pamela Cox, is forecasting 0.3 percent growth for Latin America this year, down from the originally 2.7 percent predicted in January. Cox anticipates that countries most closely linked with the U.S. economy will be hit the hardest. Thus, NAFTA, CAFTA and the U.S.-Caribbean Basin Trade Partnership Act (CBTPA) may prove particularly harmful for Mexico, Central America, and the Caribbean in the foreseeable future. Click here for COHA's country-by-country analysis. Labels: COHA, Latin America, trade policy |