Colombia’s new finance chief, USMCA, Brazil’s growth

The nomination of Miguel Gómez Martínez as Colombia's next finance minister points to a much tighter fiscal stance when President-elect de la Espriella takes power. This should also help to quell inflationary pressures give BanRep space to lower its policy rate by more than the consensus expects next year. Elsewhere, after the US, Canada and Mexico failed to agree on an extension of the USMCA, the deal will now be subject to annual reviews. While that will would still leave Mexico in a favourable competitive position relative to other EM manufacturers, uncertainty is likely to hold back business investment. Finally, data out this week suggest that Brazil's economy is still holding up well, raising the bar for further interest rate cuts.