Economic Snapshot for Latin America
November 7, 2019
After a weak 2019, regional growth is expected to regain steam next year. The acceleration will be driven chiefly by a pick-up in Brazil’s economy, thanks to monetary easing and reviving confidence. Growth is also seen accelerating in Chile, Mexico and Peru. However, Argentina is expected to remain in recession amid high inflation and policy uncertainty.
Latin America Monetary & Financial Sector News
Regional inflation dropped to 7.5% in September, down from August’s 7.9%. Modest economic activity has contained price pressures in most economies, with the stark exceptions of Argentina and Venezuela. Inflation is seen falling moderately ahead as price pressures in Argentina ease.
Brazil and Chile’s central banks continued their easing cycles in October, with low inflation giving space to act to spur activity. Meanwhile, Argentina’s Central Bank tightened capital controls, in order to stabilize the exchange rate after Alberto Fernández’s presidential victory. Uruguay’s Central Bank also tightened its stance amid elevated inflation and a sliding peso.
Currencies had a mixed performance in recent weeks. Brazil’s real strengthened on a weaker dollar and some positive domestic news. Colombia and Mexico’s currencies also appreciated. However, Argentina’s peso continued to weaken, although at a less severe pace amid capital controls, and Chile’s peso hit a new record low. Currencies are seen weakening in 2020.
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5 years of Latin America economic forecasts for more than 30 economic indicators.
Latin America Economic News
Brazil: Economic activity hits four-month high in September
November 15, 2019
Economic activity rose 0.4% in seasonally-adjusted month-on-month terms, according to the Central Bank’s monthly indicator for economic activity.
Colombia: Industrial sector stays subdued in September
November 14, 2019
Industrial production grew 0.3% on an annual basis in September, edging up from August’s meager 0.1% expansion according to the Statistical Institute (DANE).
Argentina: Inflation recedes but remains elevated in October
November 14, 2019
Consumer prices rose 3.3% over the previous month in October, coming in well below September’s 5.9% surge, which had marked the second consecutive month of spiking price pressures, according to the National Statistical Institute (INDEC).
Colombia: Growth accelerates to four-year high in the third quarter
November 14, 2019
Economic growth accelerated to 3.3% year-on-year in the third quarter from 3.0% in the second quarter, according to a preliminary estimate released by the Statistical Institute (DANE) on 14 November.
Brazil: Retail sales gain steam in September
November 13, 2019
Retail sales (excluding cars and construction) rose 0.7% from the previous month in seasonally-adjusted terms in September, above August’s 0.2% increase.
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