Mexico's Ortiz sees Latam well prepared for U.S. downturn

DAVOS, Switzerland (Reuters) - Latin America's economies cannot escape the fallout from a U.S. recession, given obvious trade and financial links, but they are better placed to weather the storm than ever before, Mexico's central bank chief Guillermo Ortiz said on Wednesday.

Speaking on a panel on the Latin American economic outlook at the annual World Economic Forum in Davos, Ortiz said: "Latin America today, from a macroeconomic perspective, is as solid as it's ever been -- at least in my lifetime."

"The streak of economic growth we have seen in the last five years is the best since the 1960s and 1970s," said Ortiz, citing lower fiscal deficits, better exchange rate management and inflation targeting as positive fundamental improvements.

But Ortiz said he did not believe the rest of the world could decouple from a U.S. recession and Latin America would feel the impact -- Mexico maybe more so because of the huge level of exports it sends to the United States.

"This word of 'decoupling' -- I don't think it has any meaning at all."

Yet, Ortiz said Mexico had important buffers to a US downturn -- high levels of remittances that should hold stable this year; a growing non-traded sector of the economy and better credit provision to the private sector of the economy."

(Reporting by Mike Dolan)