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 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.
Economic Comment
Brazil lost its investment grade with S&P on 9 September. The downgrade underlines Brazil’s enormous fiscal challenges. Political headwinds could further darken the fiscal and economic outlook.