Elevated metals prices to support Andes’ terms of trade
We think metals prices will fall back from current high levels, which will weigh on Latin American currencies. But prices will remain high by historical standards, which should keep external positions strong in the major Andean producers – Peru and Chile – and make fiscal consolidation easier. With most of the commodities windfall likely to be saved, there’s unlikely to be a major boost to growth though.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
