trending Market Intelligence /marketintelligence/en/news-insights/trending/rtoe4capaogsajfdkqc9jw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

World Bank: LatAm growth weakens as South America comes to a 'screeching halt'

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

World Bank: LatAm growth weakens as South America comes to a 'screeching halt'

The World Bank on Oct. 5 lowered its 2018 economic growth forecast for Latin America to 0.6% from its previous estimate of 1.7%, mainly due to volatility in the major South American economies of Brazil and Argentina, as well the continuing crisis in Venezuela.

In its semiannual outlook report, the World Bank also said it now expects the region's economy to expand by 1.6% in 2019, down from its previous forecast of 2.3%.

"This reduction in growth will be mainly due to growth in South America coming to a screeching halt in 2018," the World Bank wrote. It expects a 0.1% economic decline in South America this year, and 1.2% growth in 2019.

The region's economic prospects were weighed down by Argentina's macroeconomic crisis that began in April, Brazil's growth slowdown, and the lingering deterioration of the economic and social spheres in Venezuela.

For 2018, the World Bank expects Argentina and Venezuela's economies to contract 2.5% and 18.2% respectively. In Brazil — Latin America's largest economy — GDP growth is only seen hitting 1.2% this year, the international financial body said.

In addition, a worsening external environment is exacerbating the region's dimmer economic outlook, the World Bank said. The normalization of the monetary policy in the U.S. has taken a toll on capital inflows to the region and has spurred weakness in most major emerging market currencies. On the other hand, strong growth in China and the U.S. as well as a recovery in commodity prices, have provided some relief for the region.

Still, the World Bank identified the overall situation in the region as "worrisome," given significant political uncertainty in Brazil amid a polarizing presidential election, a deeper-than-expected recession in Argentina, concerns on the sustainability of key reforms in Mexico, as well as ongoing discussion of the North American Free Trade Agreement. The institution also flagged the region's fiscal situation, which it noted has barely improved since last year.

On the other hand, the World Bank expects the Central American and Caribbean regions to post more robust growth of 2.8% and 3.7%, respectively, this year, although prospects in Central America could be impacted by political and economic risks in Nicaragua. Mexico's economy, meanwhile, is expected to grow 2.3% in 2018 and 2019.