Growth in Latin America and the Caribbean continued
to slow in early 2014, with data coming in even
weaker than expected. External conditions played a
role, as exports fell short of expectations in early 2014,
and terms of trade deteriorated for some countries
(Figure 2.6). However, domestic factors were also
important in several economies as supply bottlenecks
and policy uncertainty held back business confidence
and investment. The resulting slowdown has increasingly
spread to consumer spending amid signs that
labor markets—although still quite tight—are starting
to soften.