Author: Ravi Kumar
Gone are the days when Latin American and Caribbean countries were known for their political instability, military takeovers, caudillos, drug trafficking, economic crisis and chaos. Thanks to the visionary leaders and inhabitants of the region who have slowly evolved and learnt to regain their strength that was fully buried in their colonial legacy which kept on haunting the region for almost 180 years after their independence in 1810s. The ongoing economic slowdown has least affected the Latin American and Caribbean countries (LAC) and they have become more stable and less vulnerable than in the past for possessing current account surplus, sound public finances, a lower level and better profits of public and external debt and large international financial reserves. As per the recent report issued by ECLAC (UN Economic Commission for Latin America and Caribbean) the LAC region is relatively well placed to withstand the slowdown in the United States and the resultant direct and indirect effects on its exports. The region also enjoys strong fiscal and debt positions that may discourage drastic shifts in financial flows. Latin America is better prepared because of the progress it has made in macroeconomic management.
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