The post-recession rebound in most of Latin America is showing signs of slowing but growth is likely to remain fairly strong over the coming quarters. We still expect the region to expand by around 4.0% next year, compared to growth of just 1.6% in the G7. Instead, the biggest risk over the coming quarters is not that the pace of growth disappoints but rather that it becomes increasingly unbalanced, with domestic demand continuing to boom while exports sectors slow and balance of payments positions deteriorate.
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