A recent overview by the UN Economic Commission for Latin America and the Caribbean reveals that the region’s larger economies have been significantly affected by the global economic crisis in the following ways:
- Reduction in both international demand and the terms of trade for the region’s goods and services.
- Increasing difficulties in accessing international finance.
- Strong pressure on exchange rates.
- Deterioration in labour markets, investment, and consumption.
This paper reflects on the commission’s findings in relation to statistics from a variety of sources including the World Bank, International Monetary Fund, and the Economist. It highlights the countries in the region most at risk from the economic crisis, documenting changes in their economic growth, trade and financial sectors, and unemployment levels. It explores what the policy implications are for the region’s governments responding to the crisis and the wider implications for donors.
