Our Latin America Economics Chart Pack has been updated with the latest data and our analysis of recent developments.
After a strong start of the year, regional growth appears to have slowed in Q2 and we expect this to continue in the coming quarters. Brazil and Mexico’s economies are likely to underperform the Andes and disappoint consensus expectations in the next couple of years. Stubborn underlying inflation pressures will limit the extent of rate cuts and monetary policy will be kept very restrictive. Slow growth, high borrowing costs and insufficiently tight fiscal policy mean that public finance risks are likely to return to the spotlight.
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