Assessing the impact of lower oil prices on Latin America

The biggest loser from the drop in oil prices within Latin America will be Venezuela and, although the government may make its debt servicing obligations this month, a default seems more likely than not in the next couple of years if oil prices remain at current levels. Elsewhere in the region, lower oil prices will probably lead to slower growth rather than all out crisis in Colombia, while the impact on Mexico may not be as severe as many believe.