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

• Economic activity continues to show favorable signs, although performance varies across countries. Panama maintains strong momentum and an improving growth outlook, while Costa Rica’s economy slows amid weaker activity in its free-trade zones. Meanwhile, El Salvador continues to strengthen its liquidity buffers, and the Dominican Republic reports record-high remittances.
• Financial risks come into focus as the region prepares for the election of a new president. Argentina faces greater constraints on its return to international capital markets, while Chilean pension fund administrators (AFPs) report losses amid the shift in the U.S. interest-rate cycle. Meanwhile, Brazil enters the final stretch of the presidential runoff, with Flávio Bolsonaro leading Lula in the polls.
• Inflation continues to shape the global outlook. The rebound in energy prices is increasing inflationary pressures in the United States and reinforcing the bias toward higher interest rates. At the same time, China is experiencing stronger producer price pressures, although weak domestic demand continues to keep consumer inflation contained.

Read the full report here: Bladex Weekly LatAm Insight