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Real growth of Latin America gross domestic products has increased and inflation has fallen. There are dangers from import growth, the high cost of debt servicing and possible changes in investor sentiment. Argentina is showing strong economic growth but could be hit by US interes rate rises or Brazil's economic problems. Brazil has seen its trade deficit widen, and interest rates are likely to be raised. Peru is seeing growth in exports and investment, but is affected by tight monetary and fiscal policies. Venezuela and Colombia are both affected by currency concerns, and Mexico is seeing a drop in inflation and stronger growth.

Latin America is still regarded as a rather risky investment location, and this makes it difficult to obtain finance from the international capital markets. There has been a sharp rise in the numbe of project finance opportunities in the region, but the number of copmleted projects is increasing only slowly. Long-term debt remains rare, but new benchmarks are being established all the time.

 
For further information, contact Global Markets Limited.
CONTACT RAMESH C MANGHIRMALANI
 
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