Latin America Outlook 2Q19

BBVA Research

BBVA Research’s report for the second quarter of 2019 highlights that the slowdown of global economic activity is lengthening because of China’s structural moderation, high levels of uncertainty in Europe and to the protectionism and cyclical slowdown in the United States.

This deceleration, as well as lower raw material prices, is contributing to keeping Latin America’s growth below its rates between 2010-13: it will grow by 1.7% in 2019 and 2.3% in 2020, less than previously expected (2.1% and 2.4%, respectively).

The report reveals that the growth perspectives for Argentina, Brazil, Mexico, Paraguay and Uruguay have worsened, both as a result of the global context and due to local factors (uncertainty about new governmental policies, presidential elections...) and remain the same in Peru, Colombia and Chile, three of the countries with the fastest and most stable economic growth, thanks to their more prudent, steady macroeconomic policies.