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Latin America’s fiscal outperformance during the post-Covid-19 pandemic recovery in 2021-2022 is coming to an end in 2023, according to 1H23 data (available everywhere except Bolivia, Colombia and Panama). The fiscal balances of most sovereigns in the region worsened by at least 0.5pp of GDP by June relative to December, on a 12-month rolling basis. The trend reflects fading of cyclical factors that helped in prior years, but also a structural loosening of the purse strings in some cases. Some sovereigns have bucked this trend, mostly in Central America.