Challenges to the South American Economy

Throughout his career in banking, Julio M. Herrera Velutini has held high-level positions in a variety of Latin American financial institutions. Also cofounder of several banking groups in South America, Julio Herrera Velutini currently leads as chairman of a major international bank in Venezuela.

In late 2014, the slowing of global economic growth has captured the attention of international economists. The World Trade Organization announced in September that it had officially lowered its growth forecast to 3.1 percent from 4.6 percent for 2014. The Organization also announced a 2015 prediction of 4 percent, which marked a 1.3 percent reduction from earlier forecasts.

This forecast comes after a steady pattern of trade growth slowdown of approximately 0.1 percent per year in 2012 and 2013. South America is struggling to stay afloat with a 3.4 percent decline in imports and a 0.8 reduction in exports. Latin America as a whole expects only a 1.3 percent gross domestic product (GDP) growth for 2014. Integrated northern economies may see 2.7 percent GDP growth in 2014 and 3.5 percent in 2015, although experts predict divergent conditions in which some nations thrive significantly as compared to neighboring economies.

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