(The following statement was released by the rating agency)
Jan 02 - Standard & Poor’s expects average GDP growth in Latin America to pick up toward 3.5% in 2013 from close to 2.5% in 2012, said an article titled “Economic Growth In Latin America Will Pick Up Slightly In 2013.”
“The pickup is essentially based on a recovery in Brazil, where fiscal, monetary, and credit stimulus and policy attempts to refocus on medium-term investment prospects should support gradually higher GDP and domestic demand,” said Standard & Poor’s credit analyst Lisa Schineller. “For Mexico, whose economy is closely tied to the U.S. economy, we forecast that growth will edge slightly lower, particularly as the economy feels the effects of more moderate U.S. industrial production. And for most of the smaller countries in the region, such as Colombia, Chile, Peru, and Panama, we see GDP growth holding fairly steady in 2013 at rates more or less similar to those of 2012.”
“The expected 2013 upturn in Latin America is, however, one of growth below the 3.7% average of the past 10 years,” said Ms. Schineller. Compared with 2012, we expect gradual improvement over the course of the year: Worry about the U.S. fiscal cliff and associated economic weakness dissipates, Europe moves out of recession by year-end, and China picks up. We forecast that the U.S. economy will grow a bit over 2%, Eurozone real GDP averages -0.1%, and China’s growth is about 8%, though several percentage points lower than growth in recent years.