Latam growth likely worsened in Q2

Latam growth indicators continued to post disappointing results in Q2 although not all of it was surprising, particularly on Brazil. 

"As the trade, IP and the monthly supply-side index suggest, the Brazilian economy likely contracted more sharply in Q2 than in Q1 and the economy looks set to contract -1.6% this year", says Societe Generale. 

The Chilean economy slowed down again in Q2 after a brief and modest recovery in Q4 14 /Q1 15 and the economy will most likely grow significantly below its trend this year. 

"The 2016 growth outlook has deteriorated further. The same set of indicators suggest the economy deteriorated further in Q2 in Mexico as well, and while a recovery is still seen in H2 due to an expected strengthening of demand from the US, the economy will most likely grow below trend this year", added Societe Generale.