Economic Snapshot for Latin America
September 22, 2020
The fast-spreading Covid-19 pandemic is set to push the region into its deepest recession in modern history this year
The region is set to experience a sharp downturn this year as lockdowns pummel activity. Considerable job and income losses will hit household spending, while heightened economic uncertainty will hammer investment activity. Moreover, disrupted value chains and low demand for commodities will squeeze exports, while weak fiscal positions further cloud the outlook.
Latin America Monetary & Financial Sector News
Regional inflation inched up to 6.2% in August from 6.1% in July, mainly driven by stronger price pressures in Brazil and Mexico. Notably, however, consumer prices fell at the sharpest annual rate in over two years in Ecuador. This year, inflation will hover well below 2019 levels, contained by a pronounced drop in domestic activity and low global oil prices.
The central banks of Colombia and Mexico slashed their policy rates again over the past month to further soften the economic impact of the pandemic. Meanwhile, the central banks of Chile, Paraguay and Peru kept their policy rates unchanged. Looking forward, monetary policy stances are poised to remain expansionary through year-end.
Most regional currencies appreciated against the USD in recent weeks, amid Fed Chairman Jerome Powell’s announcement of a major policy shift. The Mexican peso also benefited from a lean budget and a cautious monetary policy stance, while an improving economic situation supported the Brazilian real. That said, currencies will weaken this year, due to the Covid-19 pandemic.
Sample Report
5 years of Latin America economic forecasts for more than 30 economic indicators.
Latin America Economic News
-
Argentina: Merchandise exports plunge in September
October 23, 2020
Merchandise exports tumbled 18.0% in annual terms in September, following August’s 11.3% slump.
-
Argentina: Consumer confidence dips again in October
October 23, 2020
The Universidad Torcuato di Tella (UTDT) consumer confidence index decreased from 40.3 in September to 38.8 in October.
-
Argentina: Decline in economic activity softens in August
October 23, 2020
On an annual basis, economic activity fell at a softer pace of 11.6% in August (July: -13.1% yoy).
-
Peru: Softer decline economic activity in August
October 20, 2020
Economic activity decreased 9.8% year-on-year in August (July: -11.7% yoy), marking the best result since February as the staged reopening of the economy has helped foster a recovery in activity.
-
Argentina: Inflation falls again in September
October 19, 2020
Consumer prices increased 2.84% over the last month in September, above the 1.70% increase logged in August.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
