Fiscal risks have reared their head again in Brazil amid comments from President Lula that the government may no longer aim for a balanced primary budget in 2024. In the near-term, any fiscal slippage is likely to be met with more hawkish rhetoric from Copom. But the changing composition of Copom might tip the balance away from the hawks further out. Elsewhere, headwinds to Panama's economy are mounting as a drought continues to hinder ships traversing the Canal while the potential scrapping of a key mining project due to protests threatens the country's investment grade rating. Finally, inflation concerns appear to be top of Colombia's central bank's mind, which supports our view that the easing cycle will proceed more gradually than most expect next year.
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