In the first half of 2023, Latin America’s fiscal balances displayed signs of weakening, a shift from the positive fiscal trends observed in the years following the pandemic, as reported by Fitch. The surge in inflation in 2022 temporarily boosted many Latin American countries, but 2023’s disinflation and rising government expenditures have reversed this trend. Most Latin American nations observed a rise in fiscal deficits over the initial six months of 2023. The region is poised to witness higher fiscal deficits in 2023 compared to 2022, barring a few exceptions, such as Colombia.