The past year has been tumultuous for Latin American politics, characterised by a shift to the right in election results and away from populism in policy, and numerous corruption scandals. Current risk levels are likely to linger in the coming year.
Economic activity in Latin America is expected to pick up in 2017, though the improvement is modest. Few countries enjoy the room to use monetary or fiscal stimulus to give their economies a hand.
We expect that UK’s vote to leave the EU will negatively affect economic growth in the eurozone. We believe that the impact in 2016 is rather small, but we lower our growth forecast for 2017 for both the eurozone and the Netherlands by ¼%-point.
Economic Report Dutch version
European growth is expected to remain subdued in the coming years, due to fading tailwind gains and structural weakness. Negative risk to the outlook have risen; the refugee crisis and a Brexit being the most prominent ones.