Latin America: a spectacular fourth quarter

Latin American funds registered a spectacular rally during the fourth quarter of 2002 - particularly during December when the region was one of the few that ended the month with a positive return.

Fernando Luque 17 January, 2003 | 3:48PM
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It was a strong finish to a poor year. 2002 was a difficult time for the Latin American region with few investors willing to brave its risks. According to the World Bank, the region has experienced a negative GDP growth of 1.1% in 2002, the worst performance in the last decade.

Looking back

Argentina began the year being forced to devalue its currency against the dollar. The Argentine peso had been pegged to the dollar for a decade in a proportion of one peso to one dollar. It was a measure which had positive effects in the battle against hyperinflation but which turned disastrous for the economy after the devaluation of the Brazilian real in early 1999.

The country also had to freeze bank deposits to prevent the collapse of the

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About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain