Brazil’s recovery continues to impress. GDP expanded by 2.0% q/q in the final quarter of last year and all the signs are that growth has remained strong in recent months. That said, concerns are building over the unbalanced nature of Brazil’s rebound and price pressures are mounting too. An interest rate hike next month seems a near certainty. But while growth should slow towards the end of the year, a soft-landing remains our central scenario. Elsewhere, Peru is enjoying a rapid rebound too, while the economic effects of last month’s massive earthquake in Chile should be relatively small and short-lived. But the outlook for other parts of the region is more challenging. Argentina continues to suffer from a toxic mix of record-high public spending and runaway inflation, which is eroding competitiveness, while power shortages continue to blot the near-term outlook for Venezuela.
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