Juan Ruiz, BBVA Research Chief Economist for Latin America, said that this will be the last year of Latin American’s recent economic slowdown. Despite Brexit and subsequent market volatility, the inflow of capital continued across the region.
BBVA Research released its Latin America Economic Outlook report last week, with its growth forecasts for the region. Latin America’s economic prospects are truly favorable, especially for 2017, when the economy is expected to post a 1.8% growth rate. “We expect 2016 to be the year when Latin America’s slowdown bottoms out, with a decline rate that we expect to come at 0.9% this year,” said Juan Ruiz.
According to Ruiz, “although inflation is still high among South American countries, we are already seeing moderation in most countries, with the significant exception of Colombia.” This is why BBVA Research is expecting more dovish monetary policies from most central banks.
“As regards Mexico, we have the opposite scenario. Inflation has remained low, but has shown an upward trend in recent months. Looking forward, however, it will stay within the target range set out by Central Banks,” said Juan Ruiz during the presentation of the report.