Volume 44, Number 175,
October-December 2013
The Implications of the Global Financial
and Economic Crisis in Latin America
Susana Nudelsman

Financial globalization has made economic growth possible for a large number of developing economies, while also contributing to a variety of financial and economic crises in these same economies. In the context of greater connectivity among markets, which was previously a phenomenon that mainly affected developing countries, developed nations were affected in 2007-2008. Factors behind global instability and financial deregulation made clear that financial globalization can bring with it severe problems.

Although international conditions have been favorable to the external and fiscal accounts of Latin America, it must also be recognized that a considerable portion of their economic performance was due to greater governmental commitment to implementing more prudent macroeconomic policies. The capacity of the region to deal with such severe external challenges without leading to a systemic financial crisis is notable in the history of the region.

Currently, Latin America is facing a complex and uncertain international scenario. Following the global crisis, recovery in the region has been significant. In the short-term, high prices of raw materials and favorable conditions for external financing have been extremely interesting for many economies in Latin America. In the longer term, aiming to sustain economic expansion, the economies of the region will have to face the challenges of emerging markets, particularly in terms of prudent macroeconomic management and increasing productivity. The challenge for these economies consists of consolidating their recent advances and ensuring sustainable economic growth. Despite its difficult history, Latin America has the potential to build a promising future.


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Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 192, January-March is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
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