Latin America Economics Update Tighter fiscal policy is still the key for Brazil Contrary to claims by some commentators, we think that tighter fiscal policy has a key role to play in ensuring that Brazil meets its current inflation/inflows challenge. Indeed, we would go as far to... 14th January 2011 · 1 min read
Latin America Economics Update First thoughts on Dilma's first week Although it is still very early days, Brazil’s new president, Dilma Rousseff, has made tackling the recent pick-up in inflation an immediate priority. But with cuts in public spending now looking... 5th January 2011 · 1 min read
Latin America Chart Pack Growth to stay strong in 2011 but imbalances will widen The outlook for Latin America in 2011 is, on the whole, pretty good. We expect almost all countries in the region to grow at around their potential rates next year. But while there are few concerns... 21st December 2010 · 1 min read
Latin America Economics Update Could the next move in Brazilian rates be down? The incoming administration in Brazil has a historic opportunity to re-balance the policy mix in favour of tighter fiscal policy and looser monetary policy (and a weaker currency). What’s more, there... 16th December 2010 · 1 min read
Latin America Economic Outlook Outlook good but testing times lie ahead The outlook for Latin America remains good and, while the developed world will struggle to grow by 2% next year, we expect the region as a whole to grow by 4%. Brazil, Chile, Peru and Colombia will... 14th December 2010 · 1 min read
Latin America Economics Update Brazil slows in Q3, but should bounce in Q4 The slowdown in Brazilian GDP growth to 0.5% q/q in Q3, from 1.8% q/q in Q2, should be a shortlived blip and the economy appears to have picked up pace once again in Q4. Looking ahead to 2011, the... 9th December 2010 · 1 min read
Latin America Economics Update Brazilian inflation increases, but rates still on hold Brazilian inflation rose to 5.6% y/y in November – well above the Brazilian Central Bank’s (BCB’s) 4.5% target. But the bulk of the pick-up was driven by food prices and with policymakers at the BCB... 8th December 2010 · 1 min read
Latin America Economics Update Brazilian industry still lagging behind Although Brazilian industrial production rose in month-on-month terms in October, the sector has essentially stagnated over the past six months thanks in part to the strong real. With the exchange... 2nd December 2010 · 1 min read
Latin America Economics Update Currency concerns to temper rate hikes Strong capital inflows continue to create something of a headache for policymakers in Latin America. On the one hand, growth should remain strong over the coming quarters, while the inflation outlook... 29th November 2010 · 1 min read
Latin America Economics Update Brazilian cabinet beginning to take shape It has been rumoured in the Brazilian press that Henrique Meirelles will step down as Governor of the central bank (BCB) next year, but that Finance Minister, Guido Mantega, will retain his post under... 23rd November 2010 · 1 min read
Latin America Economics Update Brazil Q3 growth to disappoint After surprising on the upside in Q2, Brazilian GDP growth appears to have slowed to a paltry 0.3% q/q in the third quarter. The good news is that growth looks likely to accelerate once again in Q4... 22nd November 2010 · 1 min read
Latin America Economics Update Brazilian growth looking increasingly unbalanced Brazilian industry is well and truly stuck in a rut, due in part to the recent strength of the real. Continued growth in the consumer-facing sectors should keep the recovery from stalling but at the... 4th November 2010 · 1 min read
Latin America Economics Focus Two priorities for the Dilma administration Continuity is the word in Brazil. After a brief wobble last month, Dilma Rousseff eventually secured the presidency this weekend, defeating Jose Serra in a run-off yesterday. So far as economic policy... 1st November 2010 · 1 min read
Latin America Chart Pack Not in a bubble... yet The prospect of further policy easing in the developed world is stoking fears about asset price bubbles in Latin America. High commodity prices, good growth prospects and comparatively high returns... 28th October 2010 · 1 min read
Latin America Economics Update Brazilian interest rates on hold as currency concerns mount Last night, the Brazilian Central Bank held interest rates at 10.75% for the second consecutive month. Concerns about the strength of the real mean that rate hikes are off the agenda for the... 21st October 2010 · 1 min read
Latin America Economics Update How should Brazil respond to capital inflows? The recent influx of foreign capital into Brazil is likely to be sustained over the coming months and quarters. But while this should ensure that the economy continues to grow at a decent pace, there... 19th October 2010 · 1 min read
