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Latin America’s new liberals

  • gemologist-thumbnail-2Revelations of corruption and profligacy have undermined the leftist governments of Latin America, angering electorates which have seen economic growth fall with the commodity cycle
  • The political right is resurgent, appealing to a renewed desire for fiscal discipline and sustainable growth based on orthodox economic policies and less reliance on the boom-bust resources trade
  • Stock markets have surged, particularly in Argentina and Brazil, where new centre-right governments aim to implement reforms that should support growth in corporate earnings
  • Is this rally driven by political promises, or are strong foundations for long-term growth being built? We are optimistic but also cognisant that Latin America’s new liberals have plenty of work to do

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