News of a potential vaccine breakthrough provides an upside risk to our GDP growth forecasts, but the crisis will still leave a legacy of higher debt and unemployment in Latin America. The impeachment of Peru's president this week adds to a growing sense that political instability in the country is here to stay, which bodes poorly for longer-term growth prospects. Finally, Sunday's local elections in Brazil will provide an early gauge of popular opinion ahead of the presidential vote in October 2022. But regardless of the result, political appetite for austerity will surely fade before long.
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