Bladex Weekly LatAm Insight

Economic Studies Department

_{Sergio Olarte | Gustavo Acero}

Our Weekly LatAm Insights, prepared by Bladex’s Economic Studies team, provide a weekly overview of the main macroeconomic developments in Latin America and the international environment, highlighting trends that may impact the region’s economic performance.

Key takeaways of the week:

• Inflation Takes Center Stage. Costa Rica returned to positive inflation territory after 16 months of deflation, while Guatemala, Colombia, and Mexico reported higher inflation readings. At the same time, Peru surprised markets by maintaining a cautious monetary policy stance in the face of mounting inflation risks.
• Economic Progress and Political Developments Shape the Agenda. The IMF is projecting a stronger growth outlook for Panama, which is also making progress on both fiscal consolidation and its international standing, although important challenges remain. In Guatemala, the Constitutional Court overturned the appointment of the President of Banguat, while in Brazil, policy proposals from the presidential candidates are beginning to take center stage ahead of the runoff election.
• Interest Rates and Sovereign Yields Take Center Stage in Global Markets. The Federal Reserve left the door open to additional rate hikes, while sovereign bond yields across developed economies continue to face upward pressure. At the same time, tensions between the United States and Iran continue to support higher oil prices.

Read the full report here: Bladex Weekly LatAm Insight