The economic climate in Latin America has improved for the second consecutive quarter, driven by Brazil, although it is still in an unfavorable zone, according to the latest joint report by FGV and Ifo released this Thursday (14.2.2019).
The Economic Climate Indicator (ICE) for business in Latin America rose from -10,7 points to -9,1 between the quarter ending in October and the one ending in January, according to the report by the Brazilian Getúlio Vargas Foundation (FGV) and the German Institute for Economic Studies at the University of Munich (Ifo).
The improvement was influenced by the Expectations Indicator (EI), which rose from 21,6 points in October to 25 points in January.
Meanwhile, the Current Situation Indicator (ISA) went from -38,3 points to -38,0 in the same period.
The rise in the Latin American ICE index was motivated by more favourable results in Brazil.
The ICE of the largest country in the region rose from -33,9 points in October to +3,6 points in January, thanks to a 240% increase in the Expectations Indicator, which jumped from 25,9 points in October to 88 in January.
In Latin America, the indicator improved in Argentina, Bolivia and Brazil, although in Argentina it remains at an unfavorable level (-30,8).
The economic climate worsened in the rest of the countries, especially in Mexico, whose results deteriorated significantly compared to the previous quarter (from -3,1 to -41,9 points).
Furthermore, Ecuador and Uruguay are also in an unfavorable zone, while Chile, Colombia, Paraguay and Peru, despite having fallen in the last quarter, remain in a favorable situation.
According to the report, the scenario may be altered as it is an election year in Argentina, Uruguay and Bolivia.
What happens in Venezuela can also impact the expectations of neighbouring countries.
Source: Xinhua
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