Venezuela: China is the key to Latin American exports, CAF expert says

China has become a key player for Latin American exports, CAF Development Strategies Vice President Fidel Jaramillo said during a forum on the outlook for Andean countries, held last Friday in Caracas.

Sponsored by the CAF and the World Bank, the event was opened by CAF Executive Vice President Luis Enrique Berrizbeitia, with the participation of Fidel Jaramillo, CAF Vice President of Development Strategies; Marcelo Guigalde, World Bank director for Andean countries; and Armando León, director of the Central Bank of Venezuela. The forum was moderated by David Varela, the resident representative of the World Bank in Venezuela.

During his remarks, the Development Strategies Vice President said that world trade had increased thanks to China. The external environment has improved and conditions on financial markets have stabilized.

According to Jaramillo, the increase in exports and commodities prices has stimulated growth in Latin America in a context of low inflation.

However, he warned that despite these and other positive developments, there are concerns in the short term, such as the deteriorating social indicators in most Latin American countries, the worst income distribution of any region in the world, political instability, weak rule of law, and lack of confidence in most institutions.