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Regional Overview: Latin America

Institute of International Finance, Inc. (IIF) (1)
March 23, 2003

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Following slight declines of output in both 2001 and 2002, Latin America is now experiencing a moderate recovery. Policies are improving in a number of countries and there are signs of stronger growth in many countries, with the exception of Venezuela. The outcome will depend heavily on the external environment and whether political conditions remain supportive of policy discipline in an environment of continuing relatively low growth.

Assuming that global conditions improve in the second half of the year and investor confidence strengthens, the recovery should gather momentum. Excluding Venezuela, we project real GDP growth in the region to increase to 2.4 percent this year and exceed 3 percent in 2004...


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1 The Institute of International Finance, Inc. (IIF), is the world’s only global association of financial institutions. Created in 1983 in response to the international debt crisis, the IIF has evolved to meet the changing needs of the financial community. Members include most of the world’s largest commercial banks and investment banks, as well as a growing number of insurance companies and investment management firms.

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March 24, 2003

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