Global Sell-Off Poses Risks To Latin American Growth, Inflation

 

• A sell-off in global financial markets, spurred by concerns over the economic impact of Covid-19 (coronavirus), will continue to batter Latin American assets over the coming weeks as investors’ risk appetites weaken.
• Fitch sees rising risks that the sell-off in Latin American currencies leading to a spike in inflation, potentially prompting central banks across the region to tighten monetary policy despite slowing growth.
• There is also additional downside risk should the virus continue to spread, particularly given reports of the first confirmed cases of Covid-19 in Latin America.

(Source: Fitch)