The economies of Latin America are likely to slow by more than most expect over the next year. We do not anticipate a prolonged downturn, but the marked deterioration in the external environment means that regional growth will probably moderate to a below-consensus 2.5% in 2012, before rebounding to 3.5% or so in 2013. With inflation set to fall, we now expect rate cuts across the region next year and most central banks should start to ease policy from Q1 2012.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.