- Declining commodity prices, which affects exports (natural gas;
- Declining remittances, from Spain, the U.S., and Argentina;
- U.S. trade preferences withdrawal--thanks, Bush! (Will Obama reverse this?);
- Suspension of investment, which has slowed to a "trickle" in recent years.
But, as bad as this looks, the IHT concludes that "The social effects of the downturn will accentuate problems affecting the Morales administration as--assuming a 'yes' vote in January's constitutional referendum--it seeks to campaign for re-election in December 2009. However, as the August recall referendum showed, Morales's personal popularity remains high. Opposition to his government is fragmented. It will be difficult for the opposition to unite around a single presidential candidate."
I'm no economist, so I can't make an informed comment. But I do know that data is frequently twisted to tell one side or the other. Anybody have any insight to this analysis?
(La Razón has a Spanish-language article that touches the same themes, with a more upbeat forecast.)
