Figure 2: Proactive LATAM central banks have not boosted FX spot rates across the region.

Brazil

Figure 3: Brazil’s economy continues to grow despite a sharp inversion of its curve in 2022 and 2023

Figure 4: Despite policy tightening, Brazil’s unemployment rate has fallen to an 8-year low

Figure 5: Brazil’s core inflation rate remains stubborn, which may have prompted a recent rate hike

Chile

Figure 6: Chile’s economy has slowed amid sharply higher rates and an inverted yield curve

Figure 7: Chile’s economic slowdown has not produced a strong rise in unemployment

Figure 8: As in much of the world, Chile’s inflation rate has settled at a higher-than-pre-pandemic level

Colombia

Figure 9: Colombia’s growth has slowed to a crawl while avoiding a severe downturn

Figure 10: Colombia’s unemployment rate has stopped falling but has not trended higher

Figure 11: Colombia’s inflation rate, though falling, remains persistently higher than pre-pandemic

Mexico

Figure 12. Mexico’s growth rate has slowed to 1.5% currently

Figure 13: Mexico’s slower growth has not translated into higher unemployment

Figure 14: Mexico’s inflation rate has crawled back to pre-pandemic levels

Bottom Line