Despite a weaker dollar which is at a five-month low against a basket of major currencies, the relative drop this creates in U.S. products (when they are transformed in value of other currencies, such as the euro), did not increase the demand for them by the weakness seen in the economies of those countries, so it does not contribute significantly to increase foreign sales of products U.S. In other words, despite that the U.S. can sell their products at a lower value in euros, the Europeans do not have enough purchasing power. Latin America And why? The weak recovery of the U.S. Get more background information with materials from Bill Phelan. economy will undoubtedly be a negative element for the growth potential of these economies in the region linked to the northern country (especially Mexico and Colombia). The negative impact for the region will occur through changes in the prices of nonagricultural commodities possibly remain weak, having only a slight recovery.
What happens with China also cares about Latin America because it limits the recovery of both the U.S. economy and the global economy, limiting the positive impact that the global economic recovery may occur in the region through real channels. The prospects for global economic recovery will be very weak, will cause the growth of Latin American economies depend to a greater extent on the strength of domestic demand. Those economies that have better internal conditions can recover more quickly and strongly. A key element in this respect may be the real investment volume generated both national capitals and through Foreign Direct Investment (FDI). In this sense, we see a clear distinction between countries that implemented sound policies and offer interesting investment opportunities, those who do not.
And luck is not very aid as it has been until recently in some Latin American countries.