A region with challenges

摘要

A less favourable external environment in 2019 will have negative implications for Latin America, especially the deceleration in China's growth, which will not only have an impact on demand, but also on commodity prices. Most Latin American economies cannot afford fiscal stimulus due to wide fiscal deficits, especially Brazil. Improvements in the labour market will help private consumption, although not to the extent of driving a sharp recovery. Further increases in commodity prices or external demand are unlikely to accelerate the expansion. Gross Domestic Product (GDP) growth in the region will be 1.5% in 2019, up from 0.7% in 2018, but still a modest rate for an emerging region.