Rato the Spanish Finance minister has some noteworthy points to make about LatAm.
Lee:
I guess the doom and gloom folks are just scaring the investors around the world,the main problem being flight of capital out of fear particularly in Latin America. In Latin America's case the perceived problems have more to do with flight of capital than structural problems with the exception of the substantial debt that Brazil has.
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Friday October 2, 1:07 pm Eastern Time
Spanish Finance Minister says confident in LatAm
NEW YORK, Oct 2 (Reuters) - Spanish Finance Minister Rodrigo Rato said Friday he was confident in the soundness of Latin American economies.
Speaking at a conference sponsored by The Wall Street Journal, he said economic reforms in the region gave Latin American countries a solid base for recovery.
''I would like to first clearly send a message of confidence in the region and that confidence I would like to explain to you right now,'' he said.
Latin American economies have been battered by global financial turmoil and foreign investors have fled regional markets. Brazil's high budget deficit and the possibility of a currency devaluation there has especially unnerved investors.
Rato said, ''After a decade of sustained macroeconomic reforms, single-digit inflation in most countries, substantial lowering of tariffs and other trade barriers, considerable strengthening of financial systems and major advances in structural reforms, countries have now solid foundations that will help them resist and overcome the crisis.''
He said Spain was one of the biggest investors in Latin American, with Spanish companies accounting for about 10 percent of investment in the region.
They will continue to invest there because of growth potential and the commitment to economic reform in the area.
''Their ideas of medium- and long-term growth in the area are very important and they intend to continue making investment in the area,'' he said.
Rato added that Spain notched annual economic growth of 3.94 percent in the first half of 1998 and would see growth of 3.8 percent next year.
On inflation, he said, ''We remain clearly below 2 percent already in 1998 and surely in 1999.''
The start of the European Monetary Union and a single European currency next January will enlarge and bolster capital markets in the region, he said.
''One of the consequences of the European Monetary Union will be the enlargement and the deepening of the capital markets in Europe,'' he said. |
