Bankers Forecast Slowdown in Latin American Growth
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SANTIAGO, Chile — Private financiers forecast Sunday that economic growth in Latin America will slow to 3% to 3.5% this year from 4% last year because of the U.S. economic slowdown, and warned that time was running out for Argentina to put its finances in order.
The Institute of International Finance, a Washington-based global association of private banks and financial institutions, said that following a solid recovery last year, Latin America is encountering a deteriorating external environment.
Demand for the region’s exports is slowing, non-oil commodity prices are unlikely to recover, and global credit conditions for emerging market countries remain tight, the institute said.
Mexico, which trades heavily with the United States, will see its pace of growth drop to 3% from 6.9% last year, the institute said.
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