In the black.(Indicators)(Brief Article)

Latin America posted a collective current account surplus of US$5.31 billion in 2003--0.3% of their collective gross domestic product--the first such surplus in 50 years. That's good news, says John Lonski, team managing director at Moody's Investors Service. The current account measures the flow of money coming in and out of a country--an indicator of financial health.

The surplus is partly because governments in the region have been paying down debts.

"I would say return of current account surplus perhaps signals less of a need for foreign currency borrowing," Lonski says. "This all adds up to improved growth prospects for Latin America."

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Demand for Latin American commodities such as oil and copper is growing in Asian economies, particularly in China. That demand has sent commodities prices rising and has pumped more money into the region.

While growth is good, governments must remain fiscally prudent to keep positive balance-of payments figures, Lonski says.

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