Latin America ‘Unaffected’ by EU Crisis
TEHRAN, July 23 (ICANA) – Inter-American Development Bank President Luis Alberto Moreno has said that Argentina and Brazil have managed to improve their economies despite the economic crisis in the European Union.
Some Latin American countries, such as Argentina and Brazil, have been able to maintain their economic integrity and have also reduced their debts, the Press TV correspondent in Buenos Aires quoted Moreno as saying on Friday.
In an interview with Press TV, economist Alejandro Gonzalez Escudero said, "The difference between the Latin American economic situation and the European crisis is the low indebtedness in the region. That certainly reduces financial pressures."
Political analyst Jorge Castro says the increase in the prices of commodities made in Latin America has brought foreign capital into the region and fueled its economic growth, allowing emerging economies to assume a higher profile in the international arena.
"Latin America is growing by six percent, and South American nations are reaching even higher growth levels as a result of exports to Asia," Castro noted.
"Under these circumstances, international organizations are seeking quality and safe investments in the region," he added.
Moreno has advised that productivity should be the top priority on the agenda of Latin America countries since it would allow them to remove any future trade barrier in the way of economic growth.
Poverty levels will dramatically drop if Latin America manages to maintain a growth rate of 4.8% for the next fifteen years, the IADB president added.
With the region moving onto a sustainable growth path, only one out of ten people in these countries will be living under the extreme poverty line in the future, he stated.