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Positive Tilt in Rating Actions for a Second Year Sovereign rating actions in Latin America have been mixed in 2024, but with a positive tilt similar to 2023. So far this year, ���������ֳ� has upgraded four sovereigns – Barbados, Costa Rica, Jamaica and Nicaragua. Two sovereigns were downgraded – Panama (no longer investment grade) and Bolivia. The balance of Positive to Negative Outlooks is presently 3 to 1. Positive Outlooks are all in the Caribbean, and Peru is the only sovereign on Negative Outlook. Besides Bolivia’s entry, there has not been movement in the ‘CC’-’CCC’ categories, which also includes Argentina, Ecuador and El Salvador. Mixed Growth Picture Growth in the region has been mixed in 2024. Brazil continues to outperform, and Mexico has disappointed. Chile, Colombia and Peru are recovering from slowdowns in 2023, but face lingering uncertainties and weak investment that are inauspicious for coming years. Central America retains solid momentum, having already seen the region’s fastest post-pandemic recoveries. We expect recession only in Argentina. The region faces risks from slower US and China growth, and potential post-election trade and migration policy changes in the US. Fiscal Deterioration Continues Public finances are under pressure in most of Latin American’s larger economies. Revenues have been firm in most places, while spending has been the main source of pressure, due to indexation of social benefits, increased budgetary outlays, and rising interest bills.