We now expect the Latam region to grow 2.3% and 2.5% in 2014 and 2015, respectively, marked by China's slowdown

Yesterday we released our Latam Economic Outlook 2Q14 (available in Spanish), where we revise downwards the growth forecasts for the region from 2.6% to 2.3% in 2014 and from 2.7% to 2.5% in 2015, marked by China's slowdown, lower commodity prices and the tapering of the Fed. However, we continue to see strong heterogeneity among countries and the Pacific Alliance as a whole will grow close to 4% in both years, more than double the rates in Mercosur. Fiscal outlook has worsened for the region due to the slowdown in domestic demand, but deficits remain, in general, manageable.

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