MERCOSUR Report No. 11 (2005-2006)

In the context of a growing world economy, a steady demand for raw materials and a wealth of liquidity, the Southern Common Market (MERCOSUR: Mercado Común del Sur) continues to expand. The macroeconomic indicators reveal a more solid bloc than last year, and growth is combined with lower vulnerability in the external sector, fiscal discipline and inflation at a historic low. Economic expansion in 2006 is estimated to be around 4.9%, similar to 2005 but below the group of emerging countries.