By: Economic & Finance Report
In the 3rd Quarter Latin America’s economic growth picked up some steam. The GDP indicated that Latin America expanded 0.6% in the Q3. Economies such Bolivia, Mexico, and Peru outperformed, while countries such as Venezuela, Argentina and Brazil were intensely lagging.
The decline of oil prices hurt Argentina and Venezuela because of their dependency of the rich commodity. The fall of oil prices has a drastic impact in the region because the commodity is heavily relied on as revenue for importing and exporting.
In 2015 the currency in the Latin America has taken a slide as well, which many countries saw the currency rates slide against the dollar. As the oil prices fell, so did currency for countries in the region as well.
Latin America’s economic outlook though seems to be bleek though as noted by economists reducing the region’s long term growth rate to only 0.4%. The energy sector has also been affected tremendously because of the devaluation of the oil markets.