Latin America Economics Update Chile’s resilient growth faces tougher times ahead Today’s Chilean GDP figures confirmed that the economy remained in good health over the second quarter. Even so, we are likely to witness a weaker performance from Q3 on the back of deteriorating... 19th August 2011 · 1 min read
Latin America Economics Update Venezuelan gold rush a sign that the dollar drought is back The Venezuelan President, Higo Chavez, has announced that he intends to nationalise the country's gold industry and repatriate gold reserves from abroad. With the dollat drought that... 19th August 2011 · 1 min read
Latin America Economics Update Brazil: here comes the slowdown Brazilian growth appears to have eased a little in the second quarter of this year and, thanks to a weak end to Q2 and the recent turmoil in markets, looks set to slow yet further in Q3. The question... 18th August 2011 · 1 min read
Latin America Economics Update Mexican rates on hold until 2013 The recent turmoil in the financial markets has re-shaped the debate on how far interest rates may need to rise in Latin America. We still expect one or two more hikes in Peru, Colombia and perhaps... 18th August 2011 · 1 min read
Latin America Economics Update Peru: Growth slowing but not collapsing Peru’s growth rate cooled over the second quarter of this year as weak domestic industry continued to drag on growth and investment suffered from electoral uncertainty. Going into Q3 we expect... 16th August 2011 · 1 min read
Latin America Economics Update Another pause for Peru as policymakers take shelter Peru’s Central Bank (BCRP) kept interest rates at 4.25% for the third successive month last night as policymakers wait to see if the worst of the global market storm has passed over. In the very near... 13th August 2011 · 1 min read
Latin America Economics Update Mexico: Interest rates on hold until 2013? The latest Mexican Inflation Report confirms that policymakers are in no mood to begin monetary tightening. The recent global market turmoil underlines that the downside risks to Mexican growth that... 12th August 2011 · 1 min read
Latin America Economics Update Market mayhem underlines downside risks to growth The slump in financial markets across Latin America means that valuations now look fairly cheap. But while this could lead to a rally in equities once the panic of the past few days subsides, the... 10th August 2011 · 1 min read
Latin America Economics Update Chile’s slowing inflation makes another pause probable Slowing inflation in Chile raises the probability of a second successive pause at this month’s monetary policy meeting. What’s more, a weakening external backdrop will make policymakers more reluctant... 9th August 2011 · 1 min read
Latin America Economics Update Are emerging markets immune? Despite benefiting from generally better fundamentals, no emerging market (EM) is immune from the deepening problems in the US and Europe. Growth everywhere is likely to slow over the next year and... 9th August 2011 · 1 min read
Latin America Economics Update Mexican IMEF survey points to weak growth Mexico became the latest country to release a disappointing manufacturing survey last night. Weak industrial activity, coupled with sluggish growth in the service sector and the ongoing problems in... 5th August 2011 · 1 min read
Latin America Economics Update Brazil: attention back on the real The slump in Brazilian industrial production in June tips the balance in favour of interest rates being left unchanged (rather than hiked) later this month, and suggests that the tightening cycle has... 3rd August 2011 · 1 min read
Latin America Economics Update Brazilian industry still feeling the squeeze A further drop in the PMI manufacturing survey last month suggests that the outlook for Brazilian industry has continued to weaken. Relentless appreciation of the real is squeezing the tradable sector... 2nd August 2011 · 1 min read
Latin America Economics Update Colombian interest rates close to peaking The Central Bank of Colombia (BANREP) raised interest rates by 25bps to 4.5% late on Friday night. Strong activity data and rising inflation may prompt some further hikes in the very near term. But... 2nd August 2011 · 1 min read
Latin America Economics Update Ecuador: At the mercy of oil prices Fiscal profligacy and a lack of prudence in managing commodity revenues have left Ecuador highly exposed to a downturn in global oil prices. Limited financing options are likely to turn up the heat on... 30th July 2011 · 1 min read
Latin America Economics Update The next big move in Brazilian rates will be down The Brazilian Central Bank (BCB) hiked interest rates by 25bps to 12.50% last night. The tone of the accompanying statement suggests that rates may now have peaked, although we wouldn’t rule out... 22nd July 2011 · 1 min read
