Economic Survey of Latin America and the Caribbean

In 2009, the countries of Latin America and the Caribbean experienced the brunt of the global financial crisis on their levels of activity, so that the region experienced a decline of 1.9% of GDP. However, since the second half of the year, most countries in the region have begun a vigorous recovery that should strengthen in 2010 with a regional GDP expansion of approx. 5.2%. This region, together with the emerging countries of Asia, were among the most dynamic in the world prior to the global financial crisis. The factors though behind a more positive performance are both external and internal in nature. Amongst the former, can be included the continued dynamism of some key Asian economies, whose sustained demand for products from this region has created important conditions for a recovery in exports, especially in the case of South America. Similarly, the recovery of the U.S. economy, though gradual, contributes to a better scenario for Mexico, Central America and, to the extent that raises the demand for tourism, possibly also for the Caribbean. For the latter, some recovery is projected in remittances from that country by migrant workers in the region.