Recent developments

Almost six years of improving current account positions (see first figure shown here)  marked terms-of-trade gains (see second figure shown here), declines in public external debt relative to output (see third figure shown here), expansions in international reserves (see fourth figure shown here), and financial sector reforms have strengthened the ability of many countries in Latin America and the Caribbean to weather external shocks.
Nevertheless, the region has not been immune to the global increase in risk aversion and fall in external demand resulting from the financial crisis and growth has declined sharply in virtually all countries in the region.