ARLINGTON, Va. -- According to a report by the Manufacturers Alliance/MAPI, Latin American-based manufacturers will increase output this year and in 2009, maintaining momentum from 2007 and the first quarter of 2008.
The report focuses on Latin America's three largest economies -- Brazil, Argentina and Mexico -- which are responsible for over 80 percent of the region's manufacturing output. MAPI raised its forecast for overall manufacturing output in Latin America in 2008 to 4.9 percent. Manufacturing production growth will ease to 4.4 percent in 2009.
Manufacturing production in Brazil will expand 6.8 percent in 2008, with motor vehicles, transport equipment, machinery and equipment, and electrical machinery and apparatus expanding at double-digit rates. Mexico will increase 2 percent and Argentina will increase 7.5 percent in 2008.
"For 2009, we seel all industries analyzed in our report showing gains, although we expect a moderation of overall industrial growth," said Fernando Sedano, Ph.D., Manufacturers Alliance/MAPI Economic Consultant and author of the report. "Rising inflation, coupled with currency appreciation, will slow Brazilian-based manufacturers; higher interest rates and weak U.S. demand will put a ceiling on Mexico's manufacturing activity; and Argentina's rising costs -- among other macroeconomic concerns -- will likely curb the strong expansion of the past five years."
For more information, visit http://www.mapi.net.