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