Mexico and Latin America overall are not granted the immunity they thought they had from the global financial mess, but they’re still feeling optimism about their economy and exchange traded funds (ETFs).
Obama’s Promises. Although the United States is currently preoccupied with its own crisis, Latin America hopes that down the road, stronger U.S. ties are in the offing. President-elect Barack Obama met with Mexico’s President Felipe Calderon last week. The meeting reportedly focused on the escalation of drug-related violence, as well as the flow of illegal weapons and money through drug cartels. This is an issue Obama pledge to respond to in his campaign.
The Biggest Opportunity. Obama’s plan to invest in infrastructure could be a big avenue to U.S.-Latin American business opportunities.
High Hopes. In general, Latin America has high hopes that Obama can help the countries work together to stave off dire economic conditions. Analysts who cover the Latin region are warning that Obama has his hands full dealing with the U.S. and digging this economy out of a hole, reports Carla Mozee for Mena FN.
Slowing Down. Latin America can expect rapid deceleration for 2009, with growth at an unimpressive 0.5%. Likewise, Mexico’s economy is set to shrink 1.2%, proving that the credit crisis has hit all corners of the world. Luis Rojas for Reuters reports that several industries, including steel, mining and automobiles, have laid off workers, reduced shifts and cut investments in Latin America.
- iShares S&P Latin America 40 Index (ILF): down 2% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.