Latin America Outlook: North-south divergence - BBVA
|Analysts from BBVA Research expect economic growth to accelerate in Shout America, leaving behind 4 year of deceleration, but they see Mexico slowing down.
Key Quotes:
“The global economy still points to higher growth, but also more uncertainty and significant risks in the long run.”
“South America will grow 1% in 2017 and leave 4 years of deceleration behind. Mexico is on the receiving end of uncertainty about US economic policies.”
“Growth falls to 1% in 2017Markets recover in South America since January, supported by commodity prices. But asset prices still under pressure in Mexico"
“Interest rates will fall further in South America in 2017. But Mexico will continue to tighten monetary policy given rising inflation.”
“Main asset prices and exchange rates registered losses after US elections, especially in Mexico. After initial shock, markets recovered since end of 2016. Asset prices in South America managed to recover levels seen before US elections. Mexican asset prices recovered since January 20, but still remain below levels seen at the beginning of November.”
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