Recent rainfall has provided some relief to drought-hit Colombia, but with reservoir levels still perilously low, risks to hydropower generation - and consequently activity and inflation - continue to linger. Elsewhere, the positive budget numbers from Argentina this week are undoubtedly good news, but the recent large anti-austerity protests - if continued - pose a threat to President Milei's ambitious fiscal plans. Finally, Ecuador's new IMF deal should help to ease near-term default risks but President Noboa's commitment to austerity will be put to the test as next year's presidential election approaches.
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