Latam Monthly Economic Report - May 2024

EXECUTIVE SUMMARY

 

1. Argentina

• Lower House approved a diluted version of the omnibus and fiscal bills
• Senate might water them down further
• Economic figures continue posting good numbers, helping for the approval of the 8^th revision with the IMF
• But, there is still political resistance

 

2. Chile

• CLP benefitted by copper prices and a hawkish BCCh
• Inflation came better-than-expected, but risks remain
• Positive prospects of growth

 

3. Colombia

• Reforms being discussed in the Congress, but president Petro has challenges to progress on it
• Activity is struggling to recover
• Inflation downward trend keeps BanRep reducing the policy rate

 

4. Mexico

• Presidential election is approaching
• GDP is poisoned to grow
• MXN very sensitive to FED fund rate uncertainty

 

5. Peru

• President Boluarte relatively safe in power against all odds
• Economic growth limited by political uncertainty that affect reforms approval and investments
• Negative rating actions have been taken