Signs of growth in Latin America

Unlike during previous periods of slower global growth over the last decade, Latin economies now offer more resilience to the sudden shifts in capital flows which often accompany global slowdowns. Latin America is a net importer of foreign capital and so the region suffers when the cost of that capital increases with rising interest rates. The trend for foreign direct investment (FDI), as opposed to portfolio flows or external bond issuance, has rendered the Latin region less susceptible to the financial linkages which previously caused regional turmoil. Of all developing nations outsid...