Asia: The New Growth Engine for Latin America

With China in the lead, Asia's needs for natural resources and Latin America's needs for manufactured products will speed up bilateral trade between the two regions for years to come

PR Newswire

posted: 16 DAYS 19 HOURS AGO

Text SizeAAA

MIAMI, Nov. 11 /PRNewswire/ -- The economic outlook for most market-oriented Latin American countries is "pretty good" for 2010 and 2011, according to Douglas Smith, Regional Head of Research, Americas, Standard Chartered Bank. One of the reasons for the positive forecast is the expected growth in bilateral trade between Asia and Latin America, given Asia's continuing demand for raw materials, and Latin American developing middle class' needs of manufactured products.

"A natural trade relationship between Asia and Latin America has developed over time and it will widen in the future," added Smith. "We can also expect to see more bilateral free trade agreements between countries from both regions." Smith is one of two panelists - together with David Wyss, Chief Economist at Standard and Poor's, on the panel "What Lies Ahead? The Economic Outlook for America," one of the most anticipated discussions at FELABAN's Annual Assembly to be held in Miami on November 16 and 17.

Smith's optimism about Latin America is not weakened by intraregional tensions such as the rising conflict between Venezuela and Colombia, which he believes is "more noise from Venezuela as an excuse for its weak economy. The market is not worried at the moment." However, he does concede the region has challenges it must confront, including "income inequality, extreme poverty and problems with infrastructure."

Smith, an expert on China, won't be the only one speaking about Asia's - and more specifically China's - growing interest in Latin America. For the first time in its 47- year history, FELABAN's Annual Assembly will host a panel discussion on banking and international trade with representatives from three of leading Chinese banks: Bank of China, Agricultural Bank of China, and China Construction Bank.

"Asia has become increasingly important to Latin America. A decade ago exports to Asia accounted for only 5 percent of total Latin exports. That has jumped to 10 percent today, and further integration seems likely in the years ahead, especially with most Asian economies in clear recovery mode at present," said John Rodriguez, president of the Florida International Bankers Association (FIBA), the Assembly's organizer.

More information:

www.asambleamiami.com

SOURCE FELABAN

2009-11-11 13:51:00