By Herbert Lash
NEW YORK (Reuters) - The gap in economic growth rates between Latin America and other emerging regions is widening even though there is much to be bullish about, said a director at the International Finance Corporation on Thursday.
In many respects Latin America has never had it better as it experiences the longest period of sustained growth in 25 years, said Atul Mehta, director for Latin America and the Caribbean at IFC, the private sector arm of the World Bank.
"Unfortunately the benchmarks globally have been raised. Compared to the other regions of the world, Latin America is not looking nearly as good," Mehta told the Reuters Latin America Investment Summit.
For example, the gross domestic product of Latin America in 2000 was equal to 85 percent of GDP output in emerging Asia, but it is now only equal to 59 percent, Mehta said.
"That is the sort of gap that is developing between Latin America and the rest of the world, or at least other emerging markets," he said.
Another figure highlights the gap. A study by the World Bank shows that it would take $100 billion of investment a year over the next 20 years for Latin America's infrastructure to reach a level similar to that of South Korea, Mehta said.
Latin America should build upon what was once an infrastructure that was the envy of the developing world, and the high levels of health care and education for a fairly large portion of the population, he said.
The region has some competitive advantages in natural resources, which can be seen in steel production, paper and pulp, and agribusiness, he said. Continued...
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