Our Latin America Economics Chart Pack has been updated with the latest data and our analysis of recent developments.
Mexico has weathered the US’s shift toward protectionism better than many feared just a few months ago, but the economy is still likely to struggle this year. While the rest of the region is relatively insulated from the trade war, lower commodity prices and tighter fiscal policy will cause growth to slow by more than most expect over the next few years. Fiscal risks have intensified in parts of the region, most notably in Colombia, and we think that even a victory for more market-friendly administrations in the wave of upcoming elections won’t cause fiscal concerns to diminish. This feeds into our view that the recent outperformance of region’s financial assets is likely to come to an end.
Note: We'll be online discussing the outlook for Latin American economies and financial markets in an online briefing on Wednesday 18th at 10am ET/3pm BST. Sign up here.
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