The macro implications of Lat Am’s shift to the right

The political shift to the right in Latin America is likely to lead to a stronger geopolitical alignment with the US and economic policies that reduce country risk premia. Economic reforms may allow some economies – Argentina, Bolivia – that had been poorly managed to put their woes behind them. But with the macro backdrop facing Latin America likely to turn less favourable, we harbour doubts that this political shift will usher in faster regional growth.