Argentina’s IMF review, Mexican industry recovering

This week's staff-level agreement between the IMF and Argentina, for the first review of its $44bn deal, gave little assurance that the Fund will knuckle down on the country’s growing inflation and currency issues. Elsewhere, the stronger-than-expected 0.6% m/m rise in Mexico’s industrial production in April provides some positive signs that the sector is back on the road to recovery, but ongoing headwinds will prevent a major rebound. Accordingly, we still expect mediocre GDP growth of less than 2% in Mexico this year.