Latin America has been resilient to the energy shock but other headwinds are likely to hold back regional growth to around 2% over the coming years, making it the worst-performing EM region. The political shift to the right could lead to reforms and stronger growth prospects, but the effects will take time to materialise. Above-target inflation is likely to push central banks in Mexico, Chile and Peru to hike rates (whereas most expect long pauses or cuts), while easing is likely in Brazil and Colombia.