Photo: Latin America Business
The business climate in Latin America last month fell to its worst level since July 2009, Brazil’s Getulio Vargas Foundation, or FGV, said Wednesday.
The Economic Climate Index, or ICE, for Latin America fell from 90 points in April to 84 points in July, the private economic studies center said, citing the results of the quarterly survey that it conducts in association with the Economic Studies Institute at the University of Munich.
The index, however, was still above the level of 80 points, where it stood in July 2009 when the region was reeling from the effects of the international economic crisis.
The decline, the FGV said, was caused mainly by the poor evaluation of experts regarding the current economic situation.
While the so-called Current Situation Index, or ISA, fell from 82 points in April to 72 points in July, the Expectations Index, or IE, which provides a projection over the next six months, only dropped from 98 to 96 points during the same period.
This was the third consecutive quarter, according to the study, that the ICE for Latin America had come in at a level considered to be “unfavorable.”
Of the 11 countries analyzed, Mexico was the only place where the business climate improved, rising from 98 in April to 102 in July, while it remained stable in Venezuela, where since July 2013 it has been at 20 points, the lowest level in the region.