Latin America continues to slide into recession. Although the pace of decline of most economies in the region has eased, talk of recovery is premature. Indeed, exports and industrial production remain significantly below last year’s levels. In turn, the fall in economic activity has caused inflation to drop. Accordingly monetary authorities across the region continue to cut interest rates. Finally, the recent rise in global risk appetite, which we believe is likely to be short-lived, caused most local currencies to appreciate against the dollar during March and April. But in Mexico the peso fell sharply after the outbreak of the swine flu.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services