Q1 GDP data released so far confirm that Latin America is sliding into recession. Chile, Peru and Mexico all posted sharp falls in output compared with the final quarter of last year. Admittedly, there have been some signs of green shoots more recently. However, these appear to have weak roots. Meanwhile, the fall in economic activity has caused inflation to drop, allowing monetary authorities across the region continue to cut interest rates. Finally, the ongoing rise in global risk appetite has caused most local currencies to appreciate against the dollar during April and March.