Economic Snapshot for Latin America
July 15, 2020
The fast-spreading Covid-19 pandemic is set to push the region into its deepest recession in modern history this year
The economic outlook for Latin America, which is now the global epicenter of the coronavirus pandemic, was downgraded yet again this month. Lockdowns at home and the global recession will pummel economies through various channels including lower trade, commodity prices, tourism activity, remittances and domestic demand.
Latin America Monetary & Financial Sector News
Inflation in Latin America inched up to 5.9% in June from 5.8% in May, which had marked a two-year low. Higher inflation in Brazil and Mexico, mainly owing to recovering energy prices, drove the uptick. Economic slack has kept inflation broadly in check in most countries. Regional inflation is expected to ease from current levels going forward, largely on muted demand.
The central banks of Brazil, Colombia and Mexico slashed their policy rates yet again in recent weeks in a bid to further shield their economies from the Covid-19 fallout. Meanwhile, policymakers in Chile and Peru opted to leave benchmark rates steady at their multi-year lows. Central bankers overall are seen cutting rates further by year-end.
The vast majority of the region’s currencies lost ground against the USD over the past month, with the Brazilian real especially battered due to the alarming state of soaring Covid-19 cases in the country. The Colombian peso was the only currency which strengthened against the greenback. Currencies are projected to weaken much more sharply this year compared to 2019.
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5 years of Latin America economic forecasts for more than 30 economic indicators.
Latin America Economic News
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Chile: Consumer confidence ticks up in July
September 3, 2020
The Adimark GfK consumer confidence index rose to 21.2 points in July, from 20.3 points in June which had marked a record low in the survey’s history.
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Chile: Inflation ticks down in July
August 7, 2020
Consumer prices rose a seasonally-adjusted 0.10% over the previous month in July, contrasting June's 0.07% drop.
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Ecuador: Consumer prices drop at sharpest annual clip in two years in July
August 7, 2020
Consumer prices fell 0.61% in July over the last month, which was fractionally less than the 0.62% drop recorded in June.
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Brazil: Inflation increases in July
August 7, 2020
Consumer prices increased a seasonally-adjusted 0.36% in July over the previous month, accelerating from the 0.26% rise logged in June.
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Mexico: Inflation increases for third successive month in July
August 7, 2020
Consumer prices rose 0.66% in July over the previous month, which was above the 0.55% increase logged in June.
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