Latin America's Economic Prospects as the U.S. Economy Slows
The U.S. economy is facing what is possibly its worst recession in more than a quarter century, as an $8 trillion housing bubble continues to deflate and consumers pull back. The U.S. trade gap will probably continue to narrow, affecting U.S. trading partners, including Latin America.
CEPR Co-Director Mark Weisbrot recently discussed these issues with Anne Krueger, professor of International Economics at the Johns Hopkins Paul H. Nitze School of Advanced International Studies (SAIS) in Washington, D.C. and former World Bank Chief Economist and First Deputy Managing Director of the International Monetary Fund. The discussion was hosted by the Center for Economic and Policy Research and it focused on the effect that the recession in the United States might have on Latin American economies.
CEPR recently released a related report, "The Economic Impact of a U.S. Slowdown on the Americas," that found that the countries that will likely suffer most as the result of a reduction in U.S. imports are the same countries with which the United States has implemented “free trade” agreements in recent decades, including the North American Free Trade Agreement (NAFTA), and the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). Meanwhile, countries that are less dependent on the United States, or more reliant on domestic demand, will see smaller impacts of the U.S. recession on their exports and national GDP.
Video: Presentation by Mark Weisbrot and Anne Krueger