Latin America’s contribution to global economic growth will rise to 9 percent this year from 8.4 percent in 2009-11, says Deutsche Bank.
The investment bank has also raised the growth forecast for the region from 2.7 percent last year to 3.5 percent this year, according to a report published by Business News Americas.
Deutsche Bank expects Chile, Colombia and Peru to continue to deliver stable growth, but warns that Brazil’s growth will disappoint unless the government takes more effective steps to boost investment and competitiveness. “As for Argentina and Venezuela, Deutsche Bank is forecasting more of the same in 2013: high inflation, loose policies, political risk and social unrest,” the paper said.
The investment bank is also projecting the region’s GDP growth to accelerate to 3.9% in 2014.
Deutsche Bank expects the U.S. economy to grow at 2 percent this year, contributing greatly to global growth.
“While structural long-term issues such as high debts across the developed world and unbalanced growth models in emerging economies remain unsettled, 2013 could be a year of stabilization after years of crisis-fighting. Supporting this view is the fact that global growth appears to be bottoming out and looks set to begin a slow ascent back to trend levels in the second half of 2013,” the bank noted.