...Economic Growth Drives Expansion: For 2015, Fitch Ratings forecasts a decrease in loan growth rates. The deceleration follows the economic slowdown in Latin America during 2014. Weak economic conditions in the developed world, together with China's growth slowdown, have affected exports and foreign investment. In addition, some countries have experienced varying degrees of government intervention that have also affected growth. Lower Loan Growth Elasticity: According to Fitch's estimations, the average loan growth to local currency GDP growth ratio (in nominal terms) in Latin America is expected to decrease to approximately 1.4 times (x) in 2015, from 1.8x in 2013 and 1.7x in 2014. Lower loan growth in the corporate sector will drive the reduction. Manageable Loan Quality: Fitch expects an increase in nonperforming loan (NPL) ratios. However, credit quality will remain adequate in 2015. Estimates for the region vary according to economic and credit growth and unemployment rates. In Fitch's...
