The activity data from Latin America released over the past week or so suggest that, having come to a standstill in Q4, there was a strong rebound in growth in Q1 on the back of robust services activity. But the strength in services activity is keeping underlying inflation uncomfortably high, which supports our above consensus view on interest rates. Elsewhere, Panamanians head to the polls on Sunday and whoever wins the election will face big economic and fiscal challenges. Finally, one of the key takeaways from our latest quarterly EM Financial Risk Indicators published this week is that fiscal risks across Latin America are rising.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services