The strongest indicators are in Brazil, which is poised to raise interest rates as early as April to curb inflationary pressures. Inflation has also hit Argentina and Venezuela and affected other Latin American countries but the causes are less auspicious and not indicative of growth.

Brazilian Central Bank officials said the inflationary pressures were a benign outcome of the economy's performance.

If the rate rise does take place, however, it will be the first by a Latin American country since the 2008 crisis and also the first in response to a surge in consumer demand, analysts said.

Of other economies that performed well despite the financial crisis aftermath, Chile has been the unluckiest so far, because of the huge economic reversal caused by the Feb. 27 earthquake. Uruguay has bounced back with the strongest growth of all Latin American countries, surging 2.9 percent in 2009, the data showed.

The mixed results for the region's economic performance suggest recovery remains patchy and fragile, analysts said. Despite rising consumer demand in Brazil, the country didn't actually register growth in 2009, a surprise for market practitioners who had been expecting a better performance.

Mexico, Latin America's second largest economy after Brazil, saw its gross domestic product shrink 6.5 percent and Paraguay continued a downward slide with a 3.8 percent contraction in its economy.

While Brazil's growth remained static, even Argentina managed a 0.9 percent growth and Peru performed better, with a 1.2 percent growth for last year.

Figures for Venezuela remain uncertain, because of the continuing electricity and water shortages in the country. Analysts said the Venezuelan GDP could be shrinking beyond the 2.9 percent measured so far.

The economic outlook for Venezuela has worsened amid severe drought that has depleted the country's water reserves, halved hydro-electric power generation and curtailed distribution of water in urban and rural areas.

Bolivian economic figures similarly need to be verified independently, analysts said, amid government claims the country's economy grew 3.7 percent in 2009.

Colombia, too, has performed better than expected but government reports of 2.5 percent growth are yet to be confirmed by independent sources.

The mixed outlook means Latin America's political fortunes also face an uncertain future, analysts said. Venezuela's President Hugo Chavez is facing elections and widespread discontent over shortages and his style of government. Chavez maintains neither his government nor Venezuelan economy are in trouble.

Argentine President Cristina Kirchner also has responded to inflationary pressures by sharp rebuttals the country is experiencing inflation. Instead, her aides said there might be tension on prices that did not constitute inflation. Critics said Argentina might already be burdened with an annual 30 percent inflation. Opposition critics have called government versions "creative accountancy."

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News