Latin America’s GDP looks set to contract by 4% this year due to the collapse of commodity prices in 2008, low risk appetite and the sharp fall in demand for Latin American exports. There have been some signs that global conditions are recovering, or at least no longer in free-fall. But since most governments in the region failed to build up surpluses during the commodity price boom, they are now unable to implement significant fiscal stimulus measures to prevent the recession from extending well into next year.