Economic backdrop improves as political cycle advances.
Incoming data suggests that the Latin America economy ended 2017 on a healthier note, with regional GDP projected to have grown 2.3% annually in Q4. If confirmed, the reading would mark the strongest growth rate since Q1 2014 and a notable pick-up from Q3’s 1.7% expansion. The region’s economic backdrop has improved in recent months as the long-awaited recovery takes hold and growth benefits from improving confidence, accommodative financial conditions, rising prices for commodities and solid global demand.
The building momentum is being chiefly driven by stronger activity in major player Brazil. Inflation fell to historic lows in Q4, allowing the Central Bank to aggressively ease monetary policy to boost growth. Moreover, the unemployment rate edged down in the quarter, and industrial production growth hit an over two-year high in December…[READ MORE]