Signs of growth but Latin America still a ‘work in progress’
By Daniel Murray, global head of research, EFG Asset Management, 22 Mar 18
After a multi-year slowdown, 2017 was the year in which Latin America’s growth resumed. But each country is still, very much, its own economic and investment story.
In Brazil, the largest economy in the region, one of the most welcome surprises has been the very sharp drop in inflation. This has declined to around 2.8% from a peak of over 10% in early 2016.
With the main policy interest rate at 6.75% and 10-year government bond yields even higher, the prospects for further reductions in interest rates and bond yields look good.
Meanwhile, lower inflation and interest rates have boosted consumer spending and Brazil registered positive GDP growth in 2017 after two consecutive years of decline.
Click through the slides above to read more analysis of Latin America.
