Key Themes for Latin America in 2023 (S&P Global)

1. The region’s economy will grow more slowly in 2023; recession risks are increasing.
2. Lower inflation will allow central banks to begin easing monetary policy in the second half of the year.
3. Solid external positions will mitigate the risk of sharp currency depreciation.
4. Banking liquidity levels will decline in 2023, particularly in Argentina, Bolivia, and El Salvador.
5. The resurgence of the political left will lead to higher tax burdens and expanded state-led development.
6. Left-wing administrations are appointing centrist finance and economy ministers, who are gaining increased influence that provides greater economic, financial, and political stability.
7. The cargo transport, extractive, and agricultural sectors face the highest disruption risks from social protests in 2023.
8. Counterparty risks will increase for companies doing business with Central America.
9. Efforts by multiple Latin American governments to prioritize investments in the renewable energy sector will face challenges.
10. Within the process of geopolitically driven restructuring of global supply chains, Latin America presents investment opportunities. READ MORE

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