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Economic Survey of Latin America and the Caribbean 1993

image of Economic Survey of Latin America and the Caribbean 1993

Issued in two volumes - volume I gives insight into the economic trends, the international economy and the role of exchange rate policy in Latin America and the Caribbean. Volume II explores the economic developments by country. Complimentary statistical tables are included.

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External financing

The rapid growth of capital flows in international markets seen in previous years continued in 1993, with growth of 33%, after increases of 21% and 16% in 1991 and 1992, respectively. The share of international capital received by Latin America was again substantial, for the second consecutive year, due largely to a notable increase in bond sales, which exceeded US$ 27 billion. Share flotations for capital formation also increased through the medium of American Depositary Receipts (ADRs), taken up by mutual funds and other investors. The increase in these portfolio investments was due mainly to a sustained fall in the interest rates ruling in industrialized countries, above all in the United States. Short-term rates fell throughout the developed world in 1993, although there were significant fluctuations in Europe, as a result of exchange rate instability. Long-term rates also continued to fall, in response to the consolidation of public finances in the United States and a drop in inflationary expectations.

English

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