Be the first to like this
Latam will grow by 2.3% in 2014 and 2.5% in 2015, marked by the slowdown in China, lower commodity prices and Fed tapering. The Pacific Alliance will grow close to 4% each year.
Foreign deficits remain high, but will start to trend downwards in 2014. The fiscal outlook worsens with the slowdown in domestic demand. However, in general terms both deficits remain manageable.
The region's exchange rates will depreciate in 2014 and 2015, by very diverse degrees.
A greater-than-expected slowdown in China would have a substantial negative impact on South America. The Andean countries have the greatest buffers to face this scenario.