Falling mining output to drag on regional recovery

Q2 GDP data released across Latin America over the past month revealed that the mining sector was a key drag on growth in a number of economies. This looks set to continue as the lagged impact of lower commodity prices continues to weigh on mining production, particularly in Mexico and Colombia. And, while it won’t prevent the region’s economy from returning to growth next year, it’s one major reason why we expect the recovery to be weaker than in previous cycles.