Following last year’s sharp downturn, economic growth in Latin America should improve this year and next. But the pace of the recovery will be slow-going and GDP growth will remain far weaker than during the past decade. We are forecasting GDP growth of just 1.5% in 2015 – up from 1.0% last year, but well below the average of 4.0% over 2004-13. We remain upbeat on the prospects for Mexico, even though tighter fiscal policy will limit its economic recovery. A modest pick-up is on the cards in Chile and Peru too as prices of their industrial metals exports stabilise and monetary and fiscal policy remain accommodative. However, a combination of high inflation, tighter fiscal and monetary policy look set to leave Brazil lagging behind.
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