Current moderate growth prospects will make it more difficult to deepen the still-weak stability in the region and, therefore, fundamentally improve its creditworthiness. |
It will be an important driver for economic growth over the next four years. |
Latin America still shows very high levels of poverty and the most unequal distribution of income in the world. |
Lower fiscal and external vulnerabilities diminishes the downside risk for these economies over the short term. A continuation of this recent performance is therefore expected in 2006. |
Strengthening the social contract in societies with pervasive poverty and highly unequal distribution of income will continue to challenge many Latin American governments for some time to come. |
The fundamentals of the region have improved. Countries have taken advantage of the favorable international environment. |