Fitch cut the growth projection in Latin America because of the Argentine crisis

"The above increases the challenges that many countries face in consolidating fiscal accounts and stabilizing the debt burden," Fitch said in a report.

Like this The agency has sharply reduced its forecast of economic growth for 2019 from 0.7% in the second quarter of this year to 0.7%, according to estimates..

"The slowdown in global and Chinese growth as well as commodity price volatility, partly related to the continuing uncertainties of trade protectionism, is a critical external challenge for Latin America," said Fitch.

"The The negative effects of the intensification of the Argentinian crisis and the political uncertainties associated with country-specific reforms also weigh on national confidence and activity in neighboring countries."he added.

For Fitch, the push needed to complete the economic and fiscal reforms necessary to boost productivity growth and increase investment, reduce deficits and stabilize public debt in several major economies is limited.

For example, the The crisis generated in Argentina raises questions about the direction of politics in the country and the implementation of the FM programI. The note "CC" indicates that another credit event in the country is likely.

At the same time, Brazil has made progress in adopting a key pension reform for the government, but other fiscal measures are needed to improve the public finance landscape in the near term. And Mexico's June reduction to "BBB" reflects the uncertainty of local politics and the increased risks due to the deterioration of Pemex's credit profile.

"The prospects for sluggish growth, a low inflation environment (except in Venezuela and Argentina), combined with entrenched inflation expectations and a global expansionary monetary landscape have paved the way for to monetary relief, "said Fitch.

"The central banks of Brazil, Chile, Mexico and Peru have already cut rates, but large budget deficits and difficult debt dynamics will continue to weigh on fiscal flexibility, limiting the ability of many region to stimulate domestic demand, "he added.