While much of the focus in Chile has centred on Sunday's general election, one story which may have flown under the radar is that external vulnerabilities are building. Data this week showed that the current account deficit blew out in Q3 on the back of surging imports, adding to the evidence that the economy is overheating. This leaves the Chilean peso vulnerable to a tightening of external financial conditions. Elsewhere, following a poor performance in the midterm elections, Argentina's government appears to be turning towards more orthodox economic policies.
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