Economic Snapshot for Latin America
January 19, 2021
Regional economic activity should bounce back this year as the gradual lifting of restrictions buttresses domestic and foreign demand . That said, the outlook remains clouded by several downside risks, including social unrest in several countries, elevated unemployment, deteriorated fiscal metrics, further flare-ups of the virus and a potentially slow vaccine rollout.
Latin America Monetary & Financial Sector News
Regional inflation held steady at November’s 6.1% in December, as higher increases in consumer prices in Brazil, Chile and Colombia offset somewhat softer price pressures in Mexico, Peru and Uruguay. This year, inflation should gain steam on the back of recovering economic activity and accommodative monetary policy stances.
Monetary authorities in Brazil, Chile, Colombia, Mexico, Paraguay and Uruguay held their benchmark rates steady at or near record lows at their December meetings, while the Central Bank of Peru also stood pat at its first meeting of this year. In 2021, central banks across the region are expected to maintain loose stances.
Most regional currencies weakened against the USD in recent weeks, most notably the Brazilian real and Colombian peso—the former due to concerns over the pandemic and public finances, as well as a slow reform agenda, and the latter owing to a drop in crude prices. Meanwhile, currencies in Chile and Mexico gained strength. Overall, currencies are seen depreciating ahead.
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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: Business confidence weakens in April
May 4, 2021
Business confidence dropped to 51.4 in April from March's 55.9, which had marked the strongest sentiment since June 2018.
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Chile: Economic activity jumps partly on low-base effect in March
May 4, 2021
In March, the IMACEC economic activity index jumped 6.4% on an annual basis, contrasting a 2.2% drop in February.
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Mexico: IHS Markit manufacturing PMI improves in April
May 3, 2021
The manufacturing PMI produced by IHS Markit climbed from 45.6 in March to 48.4 in April, the highest reading in over one year.
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Mexico: Growth in remittances slows in March
April 30, 2021
Remittances summed USD 4.2 billion in March, representing a 2.6% year-on-year expansion.
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Mexico: Economy records best reading since Q1 2020 in the first quarter
April 30, 2021
According to a preliminary estimate, GDP slid at a more moderate pace of 3.8% year-on-year in the first quarter, above the 4.3% contraction logged in the fourth quarter of last year.
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