Fears over Chinese property giant Evergrande rocked global markets earlier this week and Latin American economies, particularly Chile and Peru, are among the most exposed in the world to problems in China’s construction sector. This underlies our view that external conditions are becoming a growing headwind to recoveries across the region. Otherwise, while there are growing fears in Argentina that firebrand Vice President Cristina Kirchner is taking over the reins, it seems that these concerns are overdone, at least for as long as the relatively moderate Economy Minister, Martín Guzmán, remains in office.
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