The financial crisis in Europe due to concerns over the Mediterranean countries is highlighting the divergence between developed world and the emerging economies of Latin America.
Saddled with huge government fiscal deficits and the likelihood of Europe being stuck in the slow lane of economic recovery for some years to come, the euro has come under intense selling pressure. Uncertainties surrounding the sovereign debt issue among eurozone members has been compounded by the lack of cohesion between the affected governments. By comparison, local currencies in Latin America remain strong and growth rate forecasts for this year have continued to be upgraded. Governments in the region are not encountering any problems in raising finance from international investors...
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