Latin American Mid-Year Update
Amid the current global landscape, the outlook for Latin America remains optimistic.
Cyclical:
- Central Banks in Latin America have started a cycle of interest rate cuts
- Inexpensive equity valuations
- Attractive bond yields and low risk of defaults
Structural:
- Privileged geographic location far from geopolitical conflicts
- Long-term support for commodity prices
- Good institutions that comply with checks and balances
Risks
- Internal socio-political events
- Global recession