Latin America’s five-year economic boom has come to an abrupt end. Recent data reveal a marked slowdown in economic activity. The drop in demand for the region’s exports, in addition to the bursting of the commodity price bubble, caused industrial production to contract by as much as 18% y/y in some countries during January. Central banks across the region have cut interest rates aggressively in reaction to the dire economic figures. As the world’s economy collapses, Latin America will find it impossible to avoid recession, and in some cases default.