Interesting article written by John Paul Rathbone, Latin America editor of the Financial Times.
Every day Luis Castilla, Peru’s finance minister, says he lights a candle and “prays that China won’t crash”.
His prayers are echoed by many in a region that remains one of the world economy’s few bright spots. South America’s commodity-rich economies grew 5 per cent in the first half of this year. Last year, these new motors of the world economy added half a percentage point to global output.
But slowing Asian demand and plunging commodity prices have raised the spectre that South America, having largely escaped the 2008-09 Great Recession, may not be so lucky this time around.
Main point = Potential new financial crisis in the “Developed World” + slow down in China = Scared Latinos
Click here to read the full article direct from the Financial Times