Port of Spain, Oct 7–A reduction in foreign debt service, increase in private capital flows, intraregional flows and growth in intraregional exports are emerging as positive economic trends among the 27 members of the Latin American Economic System (SELA).
Dr Manuela Tortora also said that the Latin American and Caribbean is the fastest growing capital market in the world.
Dr Tortora was briefing journalists in Port of Spain on the second day of the technical meeting of the XXXIII annual meeting of the Latin American Council which was holding talks on a report on the "External financing, foreign debt and intraregional capital flows in Latin America and the Caribbean" among its member countries.
She said that the total foreign debt was US$600 billion which had a 14.5 per cent ratio debt servicing/exports.
The main areas attracting foreign capital inflows were energy, mining, infrastructure and services.
Dr Tortora said the various integration schemes and trade agreements between latinamerican and caribbean countries, such as Mercosur, were leading growth in intraregional exports and intraregional investments.
" The intraregional flows are really a new phenomenon in the picture. New in the sense that it really started around 1992, 1993 and its really growing up," she said adding that it trebled from 1990.
She said governments must now incorporate the intraregional inflows of capital in development strategies.
Dr Tortora described the growth in the Caribbean and Latin America capital markets as being "spectacular."
" Till yesterday, practically, the Asian region was the only reference to assess the emerging markets, now its no more the case.
"The Caribbean and Latin American region since last year is the most emerging market in the whole world, it has even growth rates which are comparable to the Asian countries in terms of attracting foreign capitals.
" Its also competing very well with the Asian tigers," she said.
