LatAm List – Goldman Sachs recently lowered its growth projections for Latin America in 2019 due to the deteriorating global economic landscape.
According to Goldman, central banks switching to more moderated monetary policies and the growing tension between the United States and China will weaken Goldman’s expansion through Latin America. Any intention to toughen monetary policy in the region will have to be postponed.
“The growth momentum at the end of 2018 and beginning of 2019 has been weaker than expected in various large economies–Argentina, Brazil, and Mexico,–” wrote a group of Goldman economists on Latin America.
The current forecast for Brazil predicted that its economy would grow 2.2% rather than the previously projected 2.6%. The same goes for Mexico, where it was expected there would be 1.7% growth, which has been lowered to 1.5%. As for Chile, due to “tighter financial conditions and a weak private consumption dynamic”, the country is expected to grow 3.4% instead of the previous 3.6%.
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