Recap of some Latin American economies

Recap of some Latin American economies

Most economists are predicting a slow economy this year in Venezuela, following the oil strike and the imposition of price and exchange controls. The expectation is a dramatic fall in GDP of over 10%. Under these circumstances Venezuela should not even be considered as a potential market for any imported steel and SIDOR will keep control of the market for several months. Ecuador is also suffering as the congress fails to fulfill requirements for IMF funding necessary to revive the economy. The situation is not very bright in Peru either. The government declared a thirty days state of emergency during June as a result of unrest on the side of the Unions. The economical risk is increasing there. However things are improving in Chile following the signing of the free-trade agreement with the US by early June. Accordingly Chilean exports will have higher access to the US from early 2004 onwards, which will for sure boost the GDP growth. Growth target of 3.5% for this year is pretty much achieveable with expectations of further improvement in 2004. As for the steel trading, the activity in Latin American markets have been showing better signs recently, with the Brazilian mills along with other local mills regain control in those markets following the departure of the non-traditional suppliers as Asian markets started firming up.