Latin America will suffer more from the U.S. recession as time goes by, Mexico's top banker said Wednesday at the World Economic Forum.
According to Guillermo Ortiz, governor of the Central Bank of Mexico, the U.S. economy was in a recession now. Although its effects so far have been muted in most of the Latin America, more problems could arise as things continue to worsen in the United States, he said.
However, he also said Latin America is better prepared compared with other regions in the world as the problems of the U.S. economy, troubled by a financial turmoil, are leading into a global economic crisis.
Ortiz said his long-term view remained optimistic and the U.S. economy would eventually overcome the current problems.
The U.S. Federal Reserve suddenly slashed its interest rate by 75 basis points to 3.5 percent overnight Tuesday, a move designed to help ease market nerves and salvage the world's biggest economy from recession.
Meanwhile, other economists at the Forum also warned against a worsening global spill over of the U.S. financial problems.
Nouriel Roubini, professor and chairman of the U.S. Roubini Global Economics, told a six-person panel that the debate now was not whether the United States will fall into recession, but how severe it will be.
Roubini predicted a deep and prolonged decline, perhaps lasting as long as a year.
Source:Xinhua
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