Mexico & the GM strike, austerity in Colombia

The knock-on effects of the strike by GM auto workers in the US mean that the Mexican manufacturing figures due in the coming months will make for grim reading. But if GM’s deal with striking workers is approved, the overall impact on GDP growth in Q4 should be small. Elsewhere, the 2020 budget approved by Colombia’s congress this week made headlines for the projected increase in investment spending. But with revenues likely to fall short, we still expect fiscal policy to be tightened and growth to underwhelm in Colombia.