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EMERGING MARKETS-Latam FX, stocks slide as recession fears spark a flight to sturdy dollar

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* Brazil's economy ministry raises 2022 GDP growth forecast to 2% * Chile's peso hits another record low as dollar resumes ascent (Updates prices) By Anisha Sircar and Devik Jain July 14 (Reuters) - Latin American stocks hit more than 20-month lows on Thursday, and currencies slid against a safe-haven dollar on mounting worries that aggressive monetary tightening cycles by major central banks would hurt economic growth and spark a recession. Chile's peso slumped 3.8% to hit another record low of 1047.40 to the dollar as analysts said its central bank's 75-basis-point rate hike on Wednesday had not been enough to stabilize the currency. The Central Bank of Chile said more hikes would be necessary to combat spiraling inflation. Further weighing on the currency, prices of Chile's top export, copper, slipped another 2%. They have dropped 34% since March due to a stronger greenback and as China's COVID-19 curbs fanned demand worries. Mexico's peso and Colombia's peso fell 0.4% and 0.1% respectively as the dollar marched higher on prospects the U.S. Federal Reserve will continue to hike rates more aggressively than peers in the wake of inflation hovering at more than four-decade highs. "Expectations of more aggressive U.S. rate hikes add pressure on Latam central banks especially Mexico which remains effectively behind the inflation curve - the outlook for EMs has been deteriorating and rate hikes in Latam underscore that," TS Lombard economist Wilson Ferrarezi said. "The outlook of lower commodity prices going forward does not favor these economies especially in an environment of much higher interest rates in developed economies - we will continue to see those currencies suffering in the coming months." Analysts worry that Latam will suffer from slower growth as high inflation erodes consumers' purchasing power and financial conditions tighten, with assets in the region also under pressure from rising geopolitical risks. On Thursday, stocks sank nearly 3% to more than 20-month lows, with Brazil's heavyweight Bovespa index falling 1.9% to lead losses. Currencies were down 1% and have lost nearly 2.7% so far this week. Brazil's real fell 0.6% as a central bank index showed activity in Latam's largest economy fell for the second month in a row in May. Meanwhile, Brazil's Economy Ministry raised its forecast for economic growth this year to 2% from 1.5% previously, as reported by Reuters on Tuesday. The Peruvian sol firmed 1.4% in volatile trading. The country's finance minister Oscar Graham reiterated he expects the country's economy to grow 3.6% in 2022 despite slowdown concerns. Key Latin American stock indexes and currencies at 1900 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 964.97 -0.57 MSCI LatAm 1916.17 -2.85 Brazil Bovespa 96120.16 -1.8 Mexico IPC 46771.70 -1.45 Chile IPSA 5090.03 -0.59 Argentina MerVal 101186.40 -1.06 Colombia COLCAP 1267.32 -3.94 Currencies Latest Daily % change Brazil real 5.4367 -0.62 Mexico peso 20.8165 -0.46 Chile peso 1047.4 -3.82 Colombia peso 4482.6 0.07 Peru sol 3.8954 1.20 Argentina peso (interbank) 128.0000 -0.13 Argentina peso (parallel) 284 -0.35 (Reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Andrew Heavens)