Our Latin America Economics Chart Pack has been updated with the latest data and our analysis of recent developments.
Regional growth appears to have slowed in Q2 and we think it will be sluggish in the next few quarters. At a country level, we expect the Andean economies to outperform Brazil and Mexico in the next couple of years. With inflation set to rise further in many countries in the coming months, the room for interest rate cuts is narrowing and monetary policy will be kept restrictive. Slow growth, high borrowing costs and insufficiently tight fiscal policy mean that public finance risks are likely to remain in the spotlight.
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