In 2007 Latin American economy is expected to grow at 5%，representing a fifth consecutive year of growth. The current round of Latin America’s economic boom exhibits the following characteristics：Almost all the countries of the region have had relatively high growth rates，mainly due to favorable external factors.Unlike the past，in many countries，current account surplus co-exists with strong growth.While foreign trade expands remarkably and foreign debt burn decreases，net FDI inflow declines.At the same tome，fiscal situation improves and inflation rate continues to drop.Moreover，growing domestic demand and economic growth stimulate job creation. But the pressure on currency appreciation is on the rise.

Despite continued high growth，Latin American economy is still faced with such challenges as how to curb dependence upon commodity exports，how to increase government spending on social development and reduce public expenditures at the same time，how to boost investment in infrastructures，how to avoid”Dutch disease”，and how to strengthen international competitiveness.