BY SARA SCHAEFER MUNOZ
BOGOTÁ, Colombia—Latin America is becoming a tale of two economies, with nations like Peru, Colombia, Mexico and Chile growing faster than the global average and nations like Argentina and Brazil struggling with crippling slowdowns.
Brazil, for much of the past decade a growth powerhouse in the region, reported on Friday that its economy grew at an annual clip of just 2.4% in the third quarter from the previous quarter, far less than expected and dashing hopes of a bounce-back fueled by hefty interest-rate cuts and tax breaks.
The result suggests Brazil’s growth for the full year is likely to be 1%, according to São Paulo-based Tendencias consulting group—a far cry from the government’s expectations of 4.5% this year.
Overall, resource-rich Latin America has done very well in the past decade, mostly thanks to China’s ravenous appetite for raw materials to fuel its rise, which drove up prices for everything from ... Read More