Also, there is marked differentiation between specific countries. This is the case, for example, of certain countries in Eastern Europe, Asia and Africa with significant current account and fiscal deficits, making them more vulnerable to foreign capital outflows. Latin America is for the first time in decades managed under stronger macroeconomic principles.
Most of the economies are experiencing robust growth, underpinned by a buoyant domestic demand. They show prudent fiscal and monetary policies and better-matched, more solvent and deeper financial systems. The region is finally leaving behind the wellknown “original sin” as the form of currency mismatches that characterized the past decades, significantly reducing our exposure to foreign currency debt.