A year ago, we published an in-depth report arguing that the calm prevailing at the time around sovereign debt risks in Latin America wouldn’t last and that public debt dynamics would deteriorate. While there have been some positive stories (Argentina, to an extent), if anything developments over the intervening period have been worse than we feared. With governments seemingly reluctant to tighten their belt, public debt ratios are likely to rise further, bond spreads could widen, and central banks may increasingly need to take a leaf out of Brazil’s book and factor fiscal risks into their decisions too.
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