What's going on?

Economic data out on Thursday showed Brazil joining Mexico in narrowly avoiding recession last quarter � but growth in Latin America remains elusive.

What does this mean?

US economic growth in the second quarter of the year was revised downwards slightly on Thursday � to 2% compared to a year before. But Brazil, the largest economy in Latin America, can only dream of such giddy heights. While second-quarter growth came in slightly better than expected at 1%, the country is still feeling the effects of its longest-ever recession, which ended in 2017.

The Mexican economy, meanwhile, didn�t grow at all last quarter. That prompted its central bank to cut interest rates for the first time in five years earlier this month � and its annual growth forecast to the lowest level since 2009 on Thursday. But things are headed further south further south: recession-racked Argentina is now seeking to delay repayments on $100 billion of debt to avoid defaulting for the ninth time.

Why should I care?

The bigger picture: Stuck in the middle.
Latin America has been caught in the middle of the recent trade conflict between the US and China � which are currently in discussions about, er, reopening discussions. Many of its economies still depend on shipping raw materials overseas � and while countries like Chile and Peru cannily saved during the good times, a slowdown in Chinese buying has left Brazil and Argentina exposed. What�s more, 72% of Latin America�s economic growth this millennium was thanks to an expanding labor force. With fertility rates decreasing, growth may yet slow further.

For you personally: Brazil is on fire � just not economically.
Overseas investors have yanked $5 billion from Brazil�s stock exchange this year � the most since 2008. While the country�s government is hoping a potential trade deal with the US might help, a recent historic agreement with the European Union is already looking shaky in light of Brazil�s treatment of the Amazon rainforest � a crucial store of planet-warming carbon dioxide.