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A slow and bumpy path to recovery

Severe COVID-19 outbreaks across Latin America will put a brake on the region’s economic recovery in Q2. While we’re more optimistic than most that the rollout of vaccines will boost output later this year and in 2022, we still think that Latin America will emerge from this crisis in worse shape than other EM regions. Central banks will keep monetary policy looser than is currently priced into financial markets.

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