Latin America Weekly: Brazil’s robust Q1, Milei’s victory, Panama protests

Data out of Brazil next week are likely to show that the economy rebounded in Q1 and inflation rose in the first half of May, supporting the case for the central bank to deliver one final rate hike in this cycle. Elsewhere, the victory for President Milei's La Libertad Avanza Party in the Buenos Aires local election last Sunday was received positively by investors, but a strong showing in the mid-terms isn’t a foregone conclusion. Finally, there's a risk that the ongoing protests in Panama prompt the government to loosen fiscal policy further, which would increase the likelihood that the sovereign loses its investment grade rating.