Balance of payments

Economists predict the gap will widen even more through the rest of the year.
The last weeks of summer have been marked by renewed pressure of capital outflows and exchange rate devaluations in several systemically relevant emerging markets. This is just the latest round of a global portfolio rebalancing that has been in motion since May 22.
There is good reason to believe that South America, in particular, can weather this storm with minimal damage if it adopts the right macro-economic policies.