Stimulus programs, open markets
put major economies in position
to recover from recession’s fallout

TH AMERICA

FROM 2004 THROUGH 2008, U.S. exports to Brazil, Colombia, Chile and Argentina — South America’s four largest economies— more than doubled. While U.S. imports also rose rapidly, the U.S. was able to grind out rare trade surpluses with all but Colombia over the five years.

“IT IS NOT THE
WORST SHOCK
WE HAVE SEEN.”

Now many economists worry the good times won’t return for years. The global recession has pummeled trade in both directions — U.S. exports in April plummeted 35.6 percent to Argentina, 31. 8 percent to Colombia, and 24. 5 percent each to Brazil and Chile.

Weak demand for U.S. prod-

ucts is the obvious explanation, and it could get worse before it gets better. The economies of Brazil, Colombia, Chile and Argentina are expected to be flat or to contract this year, according to the International Monetary Fund.

But many specialists in the region are hopeful the region will recover relatively quickly, reviving demand for U.S. exports to those countries — and provide a glimmer of hope to air and ocean carriers operating in the region.

Liliana Rojas-Suarez, an economist and senior fellow at the Center for Global Development, said the optimists believe the market-oriented policies and reforms implemented since the 1990s “are providing a buffer against more severe and long-lasting effects. Under this view, Latin American countries are much better prepared to face the crisis, especially due to improved fiscal and debt management and the large accumulation of foreign exchange reserves.”