The coup attempt in Bolivia this week shouldn’t be read as a warning sign for other Latin American countries. But it does shine a spotlight on institutional fragility in the region – as evidenced by the recent sell-off in Mexico’s financial markets on concerns of democratic backsliding. For Bolivia, heightened political risk may harm its ability to take advantage of its lithium deposits and makes a sovereign default even more likely. Elsewhere, the pushback from Brazil’s central bank against President Lula's calls for lower interest rates re-affirms our view that monetary easing isn’t on the cards this year – and possibly next year 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