LatAm Growth Seen Slowing to 1.0%: IIF

The Institute for International Finance forecasts that GDP growth in LatAm will slow to 1.0% next year, down from an estimated 4.5% growth in 2008. Exports are expected to drop 7.0% in 2009 and a deficit of 2.3% of GDP is also expected as the trade surplus disappears and worker remittances fall. “Reduced demand for the region’s key commodity exports, a precipitous increase in global risk aversion, a substantial contraction of private capital inflows, reduced investment and a decline of consumer confidence, are resulting in lower economic growth and weakening external positions in virtually every country,” the IIF says.