Latin America. According to the study conducted by the Getulio Vargas Foundation, which included 149 specialists from 19 countries, latin America's economic climate rose in July to 4 points, after having been at 3.6 in April.Likewise, the Current Situation Index (ISA) went from 2.5 to 2.6 points between April and July and the Expectations Index (IE), which projects a scenario for the next six months, increased from 4.6 to 5.4 points.
According to the AméricaEconomía.com article, although the region's climate is still low, it has improved since January 2009 and expectations for the future are favorable.
The research institution establishes that although the ISA is low, when combined with the IE, which is on the rise, it shows that the Latin American economy emerged from the recessionary phase and will enter an economic recovery zone.
Peru was the country that registered the best regional index, 7 points in July, followed by Brazil, Chile, Colombia and Mexico. In these countries, except Mexico and Peru, the ISA increased between April and July. Brazil, Chile and Colombia also recorded growth in the expectations index, representing the beginning of the economic rebound.
Some nations such as Argentina, Ecuador, Paraguay, Uruguay, Bolivia and Venezuela will not yet emerge from recession, however in Uruguay expectations indicate a trend of improvement, because although the IE is below 5, it increased from 1 to 4.6 points.
"Argentina, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela are countries with current situation indices and expectations below 5, so both indicators are considered unfavorable. However, the value of the indices suggests that Uruguay, for example, is in a better situation than Venezuela," explained the getulio Vargas Foundation academic.
Source: AméricaEconomía.com
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