March 12, 2015
For Latin America, 2014 was a year to forget. Economic expansion slowed sharply to just 0.8% as China’s cooling economy and declining commodity prices took their toll on many of the star players, both large and small.
Regional growth was less than a third of that in 2013 and was the slowest in more than 13 years. Yet as can often be seen in Latin America, there was a marked divergence between those policymakers that were determined to drive through fiscal and economic reforms, and those that have been less quick off the mark.
The difficulties they faced are clear. The dramatic plunge in oil prices put extreme pressure on the fiscal balances of the region’s petroleum-exporters. “The commodi
A mix of orthodox macroeconomic policy and pre-emptive
tax-raising measures held investors’ confidence in the sustainability of Colombia’s growth prospects. By Phil Thornton