The fiscal situation of Latin American countries is a mixture of sweet and sour, according to the latest report from Fitch Ratings Fitch Ratings. "The Positive Outlook to Negative Outlook ratio has improved to 4:1, with Positive Outlooks for all Caribbean sovereigns, which have benefited from the post-pandemic tourism recovery and structural fiscal improvements," the report highlights.

Continued growth and fiscal balance remain important factors in Fitch's sovereign ratings assessments. Most Latin American economies will grow in 2024, with only Argentina expected to contract. However, it will be weak growth, with a slowdown from the region's 2.2% posted in 2022 to 1.4% this year. Latin America and the Caribbean will be the slowest growing region among emerging markets.

The fiscal deficit continues to be a negative issue. In Brazil, Mexico and Colombia it is growing, while in Argentina and Ecuador it is decreasing. These are the numbers:

• Argentina: -4.4% at year-end 2023, -0.6% as of June 2024
• Brazil: -7.5% at year-end 2023, -7.8% at June 2024
• Chile: -2.4% at year-end 2023, -3.6% as of June 2024
• Colombia: -4.3% at year-end 2023, -6.2% as of June 2024
• Costa Rica: -3.3 at year-end 2023, -3.8 as of June 2024
• Ecuador: -5.3% at year-end 2023, -3.9% at June 2024
• Mexico: -3.3% at year-end 2023, -4.1% as of June 2024
• Peru: -2.8% at year-end 2023, -3% at June 2024
• Uruguay: -3.3% at year-end 2023, -3.4% as of June 2024