Latin American Economies Stagnating

Thursday, December 18, 2008 12:45 PM

SANTIAGO, Chile — A six-year cycle of rapid economic growth in Latin America will come to an end next year because of the global economic slowdown, a U.N. agency predicted Thursday.

The Economic Commission for Latin America and the Caribbean said growth will fall to 1.9 percent in 2009 from 4.6 percent this year.

Falling international demand for Latin America's commodities is stalling economic growth in the region, according to a presentation by commission Executive Secretary Alicia Barcena.

"The growth engines are off and it is not known when they will the turn on again," the report said.

Unemployment will jump to between 7.8 and 8.1 percent in 2009, from a current regional average of 7.5 percent.

Inflation will drop to 5 to 6 percent in 2009 from a regional current average of 8.5 percent.

Latin American economies also are suffering from a drop in money sent home from migrant workers in developed countries, an especially serious situation for Caribbean and Central American nations.

Foreign investment in the region, which reached a record $106 billion in 2007, is dropping substantially, coupled with the higher cost of foreign credit.

Overall, the slowdown may worsen an already highly uneven distribution of income between rich and poor in the region.

Peru is expected to lead individual economic growth in 2009 at 5 percent. Mexico will be at the bottom of the list, with 0.5 percent growth.

http://www.newsmax.com/international/lt ... 63318.html

Uh... HEY DC ... can we get the wall up a little quicker before we get a whole lot more of those wonderful South of the Border Family Values that are robbing, raping and killing the American citizens you refuse to protect