FOR many Latin Americans, this will be the best Christmas holiday in a while. According to an estimate by the UN Economic Commission for Latin America, the region's economy will have grown by 5.3% in 2006. Not only is that higher than earlier forecasts. It is the third year of reasonable growth, meaning that income per head has risen by 11.7% since 2003.
Latin America is accustomed to giddy boom-bust cycles. What makes recent growth more unusual is that it coincides with a current-account surplus (see chart) and low and falling inflation (down on average from 6.1% in 2005 to 4.8% this year). That holds out hope that it will be more sustainable.
Most numbers are moving in the right direction. For the region as a whole, unemployment is edging down, real wages are increasing, foreign debt has fallen, the public finances are close to balance and investment and consumption are rising.
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