Fiscal Policy in Latin America: Prudence Today Means Prosperity Tomorrow

By Alejandro Werner: (Versions Español and Português) Public finances in most Latin American countries strengthened significantly before the global financial crisis. Since 2009, countries have generally increased public deficits, drawing down on their fiscal coffers. These expansionary policies continue and are yet to be reversed. With further pressures likely to build over the period ahead—as economic growth has slowed, […]

Unleashing Brazil’s Growth

By Martin Kaufman and Mercedes García-Escribano (Version in Español and Português) Since the early 2000s, Brazil’s economy has grown at a robust clip, with growth in 2010 reaching 7.5 percent—its strongest in a quarter of a century. A key pillar of its hard-won economic success has been sound economic policies and the adoption of far-reaching social programs, which resulted in a […]

China Gobbles Up Assets in Latin America

China National Petroleum Corp (CNPC) has agreed to purchase $2.6 billion in Peruvian gas assets from Brazil’s debt-strapped state-run oil company Petrobras as China works fast to increase its Latin America footprint. CNPC, China’s top oil and gas firm, will buy Petrobras Energia Peru SA, which owns three oil and gas blocks in Peru, currently […]

Cloudy With a Chance of Rain—Outlook for Latin America and the Caribbean

By Alejandro Werner (Español & Português versions available) For many Latin American and Caribbean economies, clouds have appeared on the economic horizon. As the global growth momentum shifts from the emerging to the advanced economies, the strength of domestic economic policies will be crucial for how countries can cope with the combination of lower commodity prices and tighter […]

Why Is the Economist Chortling Over the Prospect of Oil Pollution in Ecuador?

The Economist has increasingly been copying the descent of the Wall Street Journal into dogma.  One of it perennial hates is President Rafael Correa of Ecuador. Correa, an economist, has committed the unforgivable offense of succeeding through economic policies that The Economist despises.  This is passing strange because Correa’s four foundational policies are expanded health care, expanded education, improved infrastructure, […]

Emerging Markets: What’s Changed

(from my colleagues Dr. Win Thin and Ilan Solot) 1) The US government shutdown and its impact on the economy and economic releases have pushed out Fed tapering expectations into 2014 2) There are growing signs that Korean officials may start to step up resistance against further won gains 3) The Brazilian swaps intervention program […]