September 1, 2013
Following years of successful economic performance, Latin America, like many other emerging markets, is now facing significant domestic and external pressures that have already begun to dampen economic growth.
Economies that had benefited from institutional development and sound macro policies face the prospect of becoming stuck in a middle-income trap: having already picked the “low hanging fruit” of domestic factors including expanding labor forces, they now risk being unable to achieve high-income status as external sources of growth dissipate.
Meanwhile, those countries that failed to undertake sound macro reforms, but which were nevertheless able to sustain rapid growth on the back o
Country differentiation will prove key for investors navigating Latin America’s darkening economic landscape. By Nouriel Roubini