Latin America Update: September 21, 2011

POLITICS:

Latin American countries will be well represented at the United Nations General Assembly in New York, September 23-27. (1) Brazilian President Dilma Rousseff will continue to push for a permanent seat on the UN the Security Council. (2) Argentine President Cristina Fernandez, expected to win re-election in October, will likely discuss the Falkland Islands sovereignty dispute. (3) Venezuelan President Hugo Chavez will not attend due to his 4th round of chemotherapy. (4) Peru will present its new President Ollanta Humala, who has taken a prudent tone in an attempt to calm nervous investors and maintain Peru’s robust economic growth.

ECONOMICS:

(1) Chile remains the most competitive economy in Latin America and projects 2012 GDP growth of 5.25%. (2) Argentina experienced 23% inflation over the past 12 months as a result of expansionary monetary policy, not entirely a surprise for a country with a history of debt and monetary crises. (3) Peru is one of the top growth economies with 2011 GDP growth of 6.5% and forecast growth of 6.0 % for 2012. (4) China announced $1 Billion (USD) in development loans to strengthen ties to Caribbean countries and bolster its influence in the region.