Economic activity across most of the region deteriorated in the fourth quarter of 2015 and the beginning of this year, in part because of heightened volatility in financial markets and a further drop in commodities prices, particularly oil. Furthermore, rising interest rates in the U.S. are putting pressure on central banks in the region to hike their own benchmark interest rates in order to contain inflation expectations despite sluggish domestic demand. As a result, Standard&Poor's has once again cut its regional real GDP growth forecasts for Latin America. We now forecast regional real GDP to fall by 0.2% in 2016 (compared with a 0.5% expansion previously; see "Growth Will Likely Remain Weak, Though The Effect On Latin American
