Heading for the worst recession since the 1930s

We expect Latin America’s GDP to contract by 4% this year, the biggest decline since the Great Depression of the 1930s. What’s more, the region’s recovery will be much slower than those from previous crises, with GDP growth unlikely to return to its historic average of around 4% until 2012. At a country level, Brazil will be less affected but GDP is still likely to contract by 2%. Meanwhile, the Mexican economy is on course to shrink by 5% this year and Argentine GDP could fall by 6%.