Last updated: 08:28 / Thursday, 17 December 2015
Credit Suisse

Latin America Experiences More Tribulation

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Latin America Experiences More Tribulation
  • The outlook for Latin America continues to be negative as industrial production momentum falls
  • Brazil’s inflation is likely to stay elevated and add to economic woes
  • Currencies continue to fall hurting corporate earnings and profitability

Robert C. Serenbetz, analyst on the CIO Americas Team in Private Banking Americas at Credit Suisse, shares his outlook for Latin America, which continues to be negative as industrial production momentum falls.

Industrial production continues its declining trend likely leading to lower output and growth.

Currencies continue to fall hurting corporate earnings and profitability. In the longer term, this may help their global competitiveness.

CDS spreads on Brazilian debt have risen considerably this year; however, the cost of protection has fallen recently as some steps have been taken to address economic reforms.

Rising inflation along with increasing unemployment and some painful tax hikes are placing a large portion of the Brazilian population in an increasingly disparate position. Simultaneously, these same factors are hurting corporate expectations.

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