The energy crisis in Texas has led to power outages across Mexico this week, particularly in the northern manufacturing heartland, which we estimate may knock about 5% off industrial production this month. But given the large amount of spare capacity in Mexico’s economy, there will probably be scope to recover lost ground in the months ahead. Elsewhere, while bondholders have voiced their concerns about the path of policymaking in Argentina, we doubt that the government will significantly change tack, even if a new IMF deal is agreed later this year.
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