External vulnerabilities mean weak growth, not crisis

We have been warning for a very long time that the recent period of strong growth in Latin America has been built on shaky foundations. With external vulnerabilities mounting, several countries in the region are now exposed to tighter global monetary conditions as the global commodities boom comes to an end. Crucially, though, with the exception of Argentina and Venezuela, in this Watch we find that large foreign exchange reserves mean that the region faces a prolonged period of weak economic growth rather than another systemic crisis.