The Inter-American Development Bank has calculated that the region could enjoy a growth dividend of 2.3 percentage points a year if it closes its gap in total factor productivity with Asia
Policymakers in Latin America have been braced for tighter US monetary policy for a couple of years, which has allowed them to cope with the impact of higher borrowing costs. One fly in the ointment for corporate borrowers could be a rise in the dollar against EM currencies.
Trinidad and Tobago plans to achieve its target to balance its budget next year by cutting current spending rather than racking debt on the capital markets despite enthusiasm from investors for its paper.
Africa has been on the cusp of mainstream capital markets for years. While the continent made a breakthrough in the variety of issuance it produced in 2012-13, 2014 looks like it will be the year when African borrowers finally become established
"Indonesia, having just seen a peaceful democratic election of a non-elitist leader, is probably going to embark on reforms that should keep growth at 5%-6% for years to come"
Jim O'Neill, economic advisor, IFC
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