June trade figures out this week reinforced how perilous Argentina's balance of payments situation is, but officials continue to opt for temporary fixes rather than addressing the root problem - the overvalued exchange rate. The longer the can is kicked down the road, the higher the risk of an even more painful and disorderly devaluation further ahead. Elsewhere, although Brazil stands to benefit from the EU-Mercosur trade deal, President Lula has thrown a spanner in the works. Finally, Chile's central bank is likely to be the first major central bank in the region to commence its easing cycle next week.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services