The recent Q3 GDP data from Brazil confirmed that its economy has suffered much less than others in Latin America, largely due to the substantial fiscal support offered by the government. One consequence of the robust recovery is that price pressures are proving to be stronger than we’d previously anticipated, which is partly why we now expect 50bp of policy rate hikes next year. Elsewhere, Mexican President López Obrador (Amlo) celebrated two years in office this week. While his policymaking has been less erratic than initially feared, Amlo’s austere fiscal stance will keep a lid on Mexico’s economic recovery.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services