Due to sluggish external demand and other unfavorable factors, Latin American economy is expected to grow at 3.2% in 2012, lower than the 2011 rate of 4.3%. The following characteristics can be observed: current account is likely to turn into deficit; international reserves is expanding; inflation rate continues to subdue; sustainability of public finance remains; monetary policy is prudent; domestic demand grows; regional integration moves forward with new progress; and protectionism is on the rise in some Latin American countries. The performance of Latin America's economy in 2012 seems to indicate that it is too early to predict that the 2010s will be the "Latin American decade". Its economy still relies heavily on external demand for its commodity exports; it has yet to realize what is dubbed as "de-coupling"; and many obstacles hindering the region's long-term economic growth prospects will not be overcome in the near future. <<