The outlook for the sovereign bonds in Latin America and the Caribbean it is negative in 2023, given the slow growth of the economies, the high financial costs and the strong increase in prices for consumers, the rating agency Moody’s said on Wednesday.
In a report, the firm indicated that in the next 12 months many governments will have to make difficult political decisions due to the complex economic environment.
“Latin America’s political agenda will likely continue to focus on providing assistance to households in the short term in the face of rising food and energy prices,” said Jaime Reusche, Moody’s senior vice president for credit.
The agency added that it expects the region to present a economic expansion of 2.7% this year, a drop compared to the advance of 3.8% in 2022 and 7.1% in 2021, although among the Caribbean nations the slowdown would be less noticeable due to the recovery of the tourism sector.
While, Moody’s estimates that the debt indicators of most Latin American sovereign bonds will remain almost unchanged in relation to 2022, after the strong volatility of the previous two years.
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