Authors:
Camilo Contreras, Carlos Giraldo y Cristian Huertas
Release date:
October 2026
Topic:
The international environment has posed significant challenges for emerging market and developing economies. Long-term interest rates are at their highest levels in recent years, geopolitical uncertainty remains significant, and public financing needs have increased across several of the world’s major economies.
Despite this backdrop, Latin America has demonstrated greater resilience than might have been anticipated. However, resilience does not mean immunity: persistently high interest rates, potential supply shocks, and fiscal vulnerabilities could test the region’s buffers.
