Latin American Challenges
The global market upheaval portends even more trouble for Latin America, as investors grow wary about putting their money in unstable countries. Foreign investment to Brazil slowed abruptly this month compared with its pace in the first half of the year. The Brazilian real hit an all-time low Wednesday.
This year has brought one debacle after another: an economic collapse in Argentina, a failed coup in Venezuela, street protests in Peru and Paraguay, and a financial shock in Brazil. A four-decade conflict between Colombia’s government and Marxist guerrillas is growing hotter. Even the bright spots are hardly glittering. Mexico’s future looks secure under the umbrella of the North American Free Trade Agreement, though its economy is vulnerable to ups and downs in the U.S. business cycle. Chile remains a small island of prosperity, but its economy has been slowed by the chaos elsewhere in South America.