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The economic climate improved in all Latin American countries between July and October 2009, reports the latest joint quarterly study drawn up by the Brazilian Economy Institute, the Institute for Economic Research at the University of Munich (Ifo) and the Getulio Vargas Foundation (FGV), which also underscored the recoveries underway in Brazil, Peru and Uruguay.

The Economic Climate Index (ECI) registered a high of 5.2 points in October, which demonstrates that the effects of the global financial crisis have been overcome. The index registered 2.9 points in January, reported Diario Financiero, the lowest level since measurements began in 1990.

The ECI is defined as a synthesis indicator, composed of two qualitative measures: the Present Situation Index (PSI) and the Expectations Index (EI), which respectively deal with the country’s economic situation at present and expectations for the next six months. The research institutes consulted 142 economics experts in 16 countries in order to compile the quarterly study.

The region’s PSI rose from 2.6 to 3.3 points between July and October, remaining at what is considered an unfavorable level, explained Portafolio.com, while the EI rose from 5.4 to 7.0 points over the same period, indicating a positive outlook. “The region remains in the recovery phase of the cycle, following the global trend,” stated the study.

In the July analysis, Brazil, Chile, Colombia, Mexico and Peru were already in the economic recovery phase, while Argentina, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela remained in recession. “In October, Brazil, Peru, and Uruguay moved on to the boom stage,” stated the study, according to América Economía. “Brazil stands out with the highest indicators in the region, both in terms of economic climate and the present and expected situation,” it went on to say.

Argentina and Paraguay, reported Reuters, “have escaped from recession and entered the recovery cycle,” as stated by the study, adding that Bolivia is on the limit between recession and recovery. Chile, Colombia and Mexico continued in the recovery phase in October, while Ecuador remains in recession.

At the global level, the ECI rose considerably between July and October in the United States (8.0 points), the European Union (5.8) and Japan (6.4), exceeding the mean by over five points and indicating that an economic recovery is now underway in these countries and regions.