However, they are much reduced from those that existed 20 years or even 10 years ago. Last year, Argentina’s inflation rate was under 1%. That is down from nearly 5000% in 1989! Knowing that many of your institutions are involved in trade finance, you know that the trade outlook for the region has changed significantly from what it was a generation ago.
The annual total merchandise trade of Latin American countries has grown from $ billion in 1978 to $ billion in 1997. Even adjusted for inflation, this represents nearly a doubling of its trade, allowing the growth of Latin American imports and exports to roughly match the explosion in international trade experienced throughout the world economy during this period.