Special Dutch version
Latin American countries not appear to be breaking out of the middle-income trap. Productivity growth has been disappointingly low in recent decades. There are several big structural issues, such as severe human capital and infrastructure constraints.
Special Dutch version
Throughout history Latin America’s fortunes have been tightly linked with commodity prices. It seems we are currently at the end of yet another commodity price cycle. Where does Latin America stand now?
Special Dutch version
Latin American currencies have weakened substantially against the US dollar during 2015. The prospect of a Fed hike, fallen commodity prices and weaker global demand in general weigh on currency valuations, particularly the Brazilian real.
Special Dutch version
A number of Latin American countries have pursued populist policies with tailwind from the commodity price bubble. Now commodity prices are no longer propping up political stability, political risk in the region is set to rise.
Special Dutch version
Latin America is an agricultural powerhouse and is likely to remain so given significant resources of unexploited land. The region has achieved respectable productivity growth in the past and it is important to sustain such gains in the future.
Special Dutch version
Latin America is slowing down and lower commodity prices play a prominent role. The region is vulnerable to external environment developments, but fairly resilient. Domestic factors give most countries little firepower against external shocks.