South America is Facing Unrelenting Crisis and Uncertainty

This article is from "International Policy Digest" and it is on South America is Facing Unrelenting Crisis and Uncertainty - 2018.

South America is Facing Unrelenting Crisis and Uncertainty

In this article, it talks about South America experiencing the most difficult periods, as Brazil, Argentina and Venezuela succumb to social, economic and political turmoil. Halfway through the first decade of this country, these three countries enjoyed economics and social stability, creating a prosperous time in the region, but everything changed after 2011 when the countries began to experience what we see today as a regional crisis.

South America received one if its biggest blows when Brazil, which represents roughly 34% of the Latin American economy. Brazil's economic effects in times of crisis spread like tentacles across the region affecting the development, production, and the growth of other countries. - For example, Argentina. They experienced a slow down in growth of exports and production. especially in the car industry during the 2015-17 period. Argentina is yet to face increasing social unrest as austerity measures kick in and civilians begin to feel rising inflation, which is expected to reach 45% by end of the year.

Venezuela's situation is expected to continue in a downward spiral as the government failed to stop rampant inflation, projected by the IMF at 1 million percent and the decline of the Venezuelan economy. Venezuela has plunged into the worse crisis in history purchasing power declines at daily rates and the economy registers double-digit contractions. The Venezuelan government introduced new mechanisms to deal with the economic crisis in August, however, they are futile as the country continues to plummet into the economic crisis. The future Venezuelan remains as dim as the country's oil and h=gas industry, which represents 90% of its exports.

South America is expected to continue facing economic and social unrest as long as these three countries are not able to to solve their internal problems. South America's economic dynamics have reached a level of interconnectedness that spreads not only economic decline, but also stagnation. The future of South America will remain gloomy until the new government of Brazil takes power and Argentina is able to resolve its political drama and economic debacle, especially considering that their GDP will contract by 0.5% by 2019. On the other hand, Venezuela remains the most negative scenario with very few options left for their economic revival of the country .

 

This article was in South America. It also includes Brazil, Argentina and Venezuela for the geographic concepts.

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