Seven years after the start of the global financial crisis, world markets remain “jittery and volatile,” but the International Monetary Fund believes a growing trend among foreign investment flows into Latin America and the Caribbean could pave the way for sustainable economic growth in the future.
According to a recent report from the IMF — titled “International Flows to Latin America: Rocking the Boat?” — over the past ten years financial inflows into the region have come predominantly from two sources: remittances from migrant workers sending money back to Latin America and the Caribbean, and foreign direct investment. Previously, much of the foreign dollars circulating in the region’s economies were “hot money” — funds deposited temporarily in Latin American and Caribbean bonds and bank accounts that could leave a country as fast as it could enter, according to the IMF.
See the April 17, 2014 edition for full coverage.
{fcomment}