A combination of weak growth and deepening debt crises in the G7 and softer demand from China means that the economies of Latin America are likely to slow by more than most expect over the next few quarters. But falling inflation will provide room for policy stimulus in most countries, which should cushion the slowdown and ensure that growth begins to accelerate once again over the second half of 2012. We expect the region as a whole to grow by 2.5% next year and 3.5% in 2013.
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