Suggestions this week by Brazil's presidential front runner Lula that state banks will play a bigger role would only aggravate some of the underlying problems in the country’s economy. Elsewhere, the recent GDP figures out of Colombia and Chile show that the two economies went their different ways in Q2, but in both large current account deficits mean demand will have to weaken. Indeed, in Chile’s case, we think the economy will enter recession over the second half of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services