2012 has been a year of mixed fortunes for Latin America’s largest economies. In Chile and Peru, growth has bounced back following a minor wobble in late 2011 and both countries are currently expanding at close to trend rates. By contrast, the economies of Brazil and Colombia hit the buffers in the first half of 2012. In this Watch, we put these regional disparities under the spotlight and explain why some of the current drivers of growth in Chile and Peru are likely to weaken over the course of 2013.
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