Our Latin America Economics Chart Pack has been updated with the latest data and our analysis of recent developments.
Latin America generally got off lightly on ‘liberation day’, but the indirect effects on confidence and, more importantly, demand from China could be larger. Meanwhile, the sell-off in the region’s currencies amid the recent turmoil in financial markets will worry policymakers in countries where inflation pressures are still strong, such as Brazil and parts of the Andes. This supports our view that monetary policy in these countries will be kept tighter than most expect. Mexico is the key exception where we expect more loosening this year amid the weakness in the economy and the resilience in the peso.
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