Latin America: Cautious optimism for 2020 and 2021 - ABN AMRO

Analysts at ABN AMRO expect that growth in Latin America will improve from -0.4% in 2019 to 1.3% in 2020 and 2.3% in 2021.

Key quotes

"Leaving out Venezuela, our growth forecast for 2020 is 1.5%. Consumption is expected to be the biggest driver of growth in most countries."

"Investments will also pick up slightly in several countries, including Brazil, but not enough to lead to a genuine improvement in the low investment ratios."

"The slowdown in growth over the last year had a positive impact on inflation in many countries and also reduced the current account deficits. This created scope for many countries to push ahead with interest-rate cuts, in line with the lower interest rates in the developed economies. "