The End of the Latin American Boom
Ocampo, José Antonio
Latin America experienced rapid rates of economic growth from 2003 to 2007. The boom was based on the extraordinary coincidence of three favorable external shocks: high commodity prices, exceptional external financing and high levels of remittances. Since mid-2008, all of these factors have turned negative and deteriorated further with the deep world financial crisis that erupted in mid-September. As a result, the boom is now over, but compared to previous crises, countries now have more room to maneuver to manage adverse external conditions.