Global rating agency Moody’s revised up its overall growth forecast for Latin America due to Mexico’s strong first-half performance.
“Latin America economy will grow 1.5% for the year amid strong growth in emerging markets, which may, however, find it harder to contain inflation due to volatility in commodity prices,” Moody’s said in a report.
Moody’s expects Brazil and Mexico, Latin America’s two largest economies, to grow 2.3% and 3.3%, respectively, in 2023, above the overall forecast for the region.
However, the global rating agency, which continues to anticipate a contraction of the economies of Argentina and Chile, lowered its forecasts for Colombia and Peru.
“Inflation has declined so far this year from multi-year highs in the second half of 2022, although it will remain above Latin America’s target this year,” Moody’s said in the report.
Cumulative inflation in the five price-targeting Latin American economies—Mexico, Brazil, Peru, Colombia, and Chile—will slow to 6.5% this year and 3.5% in 2024 from 9.3% in 2022.
