Latin America experienced rapid rates of economic growth from 2003 to 2007. The boom was based on the extraordinary coincidence of three favorable external shocks: high commodity prices, exceptional external financing and high levels of remittances. Since mid-2008, all of these factors have turned negative and deteriorated further with the deep world financial crisis that erupted in mid-September. As a result, the boom is now over, but compared to previous crises, countries now have more room to maneuver to manage adverse external conditions.