Looking back into this “almost done” year 2013,there are some important facts to take into consideration, when it comes to evaluate Latin America economy performance:
1.- Important reforms for its scope and implications, took place in key sectors for Latin America economy . The inter American Development Bank (march 2013),has said that whether all Latin American countries carried out reforms for boosting economic growth by an average of 1,5%, , the spillover effect would allow an additional growth by 2,4% (y/y).-
2.- The boundaries of social tolerance, get narrower concerning to politicians decisions . The experience of Brazil and Argentina, have showed that no matter economic growth, society is demanding more connection with those needs they believe are urgent to fulfill.(inclusiveness )
3.- Latin América, has become an alternative for investments in infrastructure and the energy resources sector(oil and gas).-
4.- Economic Growth. Even though the forecast were not optimistic for this year, economic growth is still following the trend.-
5.- Lower unemployment .The unemployment rate for this year is expected to be at 6,2%,and it is within the socially acceptable rates. However, there is still the perception that this outcome is not enough, which along with other symptoms ignites higher standard of insecurity.
6.-The expectations gap, get wider between those countries which believe in economic growth to solve poverty, and those who believe in the State to be more involved into the economy .
7.- The Latin America equity market decoupled, from those ones of developed markets.(the Nikkei index has been the highest with 55% economic return for this year) The explanations for this situation go from the expected normalization process of monetary policy by the Federal Reserve, up to a price correction process on some local companies.(30% in the Chilean case, source: El Mercurio ,Friday 27th).-
Thus, 2013 was not that much a bad year !.Let expect 2014 to be better
