Latin American Outlook: Adjusting to Less Favorable Conditions

There are three reasons for a depressed business environment in Latin America. First, lower commodity prices are the main drag on economic growth across the resource-dependent region. Second, corruption scandals in Brazil, Mexico, Argentina, Chile, and elsewhere result in low consumer and business confidence levels. Third, concerns about financial stability from massive capital outflows are preventing central banks in the region from easing credit conditions. Argentina and Brazil are in a recession this year and very little growth is expected in 2016

Kristin Graybill