Latin America: middle class growth slowing down

ftseglobalmarkets.com reported after a steady rise during the past decade, Latin America’s middle class growth is moderating and ratings agency Moody’s believes the slowdown in middle class growth will likely have a broad economic impact as well affecting particular industries. Moody’s new report, entitled, “Latin America’s Middle Class Growth Slows, Tempering Prospects for Retailers, Banks and Homebuilders,” predicts that the worst affected companies will be retailers, auto manufacturers, homebuilders, airlines, and sellers of high-ticket, credit-dependent and non-essential items.

“Economic growth throughout Latin America is slowing down, with growth in the first half of 2014 lower than we expected, negatively affecting both consumption and investment,” says Gersan Zurita, a Moody’s senior vice president and co-author of the report. Read Article