Are domestic markets the answer to the global finantial crisis? Comments based on the experience of Latin America

Article | 01 December 2010
During the recent economic crisis, the drop in exports and existence of abundant reserves created opportunities for recovering economic growth and employment through the promotion of domestic demand. Brazil was among the countries that faced the new international circumstances most successfully by implementing a series of policies designed to diversify domestic consumption and partially offset the fall in exports. Several Central American countries showed some development of domestic markets, which has helped mitigate the impacts of economic shocks like the most recent one and serves to develop stable grounds for economic growth and job creation in the medium term. This suggests that it is crucial that a more balanced economic strategy between exports and the domestic market be implemented.