Although the full effects of the reforms may take years to materialize, their direction and the confidence that comes with positive expectations have likely already helped to attract continued capital inflows, and should fuel a sustained recovery.6 Concluding remarks The present environment is a challenging one for all emerging economies, including those of Latin America, but challenges, of course, always carry with them potential opportunities.
The expected global economic rebound is good news, especially for those countries poised to benefit from strong ties with the world’s biggest consumers. Future market conditions may be rocky, posing risks in particular to nations with financing vulnerabilities. The best ring-fencing strategy is to correct imbalances as efficiently as possible. In any case, a preemptive approach to strengthen macroeconomic and financial foundations is imperative.