Growth in Latin America may see a “significant slowdown” if the U.S. and Europe return to recession, even though the region’s economies are in a good enough financial shape to avoid a crisis, Morgan Stanley said.
“There is a popular, but I believe mistaken, view that Latin America’s largest economy, Brazil, was somehow largely untouched by the global downturn in late 2008,” Gray Newman, senior economist for the region, wrote in today’s report. “We would caution against reading too much into the 2008 episode.”
The region remains vulnerable to demand from China for Argentina’s soy, Chile’s copper and Brazil’s iron-ore among other commodities produced in South America.

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