...Major trends facing Latin America remain largely unchanged from 1Q15, with deceleration still the key theme. Differences within the region have become more pronounced, with growth for many South American economies weakening further, reflecting their commodity dependence and slowing global demand. Fitch has revised down its growth expectations for Colombia, Peru, Chile and Ecuador, and Brazil continues to suffer through its deepest recession since the 1930s. Positively, macro conditions in Mexico, Central America and the Caribbean remain on a firmer footing and these countries continue to benefit from their economic links with the US. Fitch believes the balance of risk from external and internal challenges remains skewed to the downside, as suggested by the placement of several bubbles in the lower left quadrant. China growth concerns and the market's anticipation of a Fed rate rise later this year will continue to drive turbulence over the short term....
