Latin America to Benefit From Higher Commodities Prices, Alan Garcia Says

Latin American economies are in a position to take advantage of Europe’s crisis as higher commodity prices will increase capital inflows into the region, Peru’s President Alan Garcia said.

The global recovery will spur “severe” problems of inflation as developed nations inject liquidity into their economies, Garcia said today in a speech at a meeting of finance ministers of the Americas and the Caribbean in Lima.

“There will be better prices for gold, copper, silver and cereals,´´ Garcia said. “Latin America can benefit from other countries’ crises to reorganize our economies.”

Peru’s economy may grow as much as 6.3 percent this year, according to the International Monetary Fund. South America’s sixth-largest economy is rebounding on increases in internal demand, construction, public infrastructure projects, commerce and manufacturing.

Peru is the world’s second-largest copper producer behind Chile, No. 1 in silver and sixth-ranked in gold.

To contact the reporters on this story: Eliana Raszewski in Lima at eraszewski@bloomberg.net; Alex Emery in Lima at aemery1@bloomberg.net.

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