Pedro Pablo Kuczynski’s plan of 5% GDP growth by 2018 strikes as being overly ambitious, and the means to achieving it is not clear. Peru’s new government has the advantage of inheriting a country with positive inertia and a sound macroeconomic standing. The true size of the gap between political rhetoric and policy- making reality will become clear soon enough. Continue reading Peru: Is PPK’s Government Plan Sound Economics?
We present a glance of the Mexican midstream following Mexico’s Energy Reform; traditionally closed upstream has drawn a lot of attention from foreign investors; however, the midstream which received less attention, could be significantly more dynamic in the following years with an outstanding potential for investment opportunities. Continue reading Investment Opportunities in the Mexican Midstream
We analyze here some of the expected benefits of Colombia’s accession to the elite OECD club. Mexico and Chile are currently the only two countries in Latin America to hold OECD membership. When it comes to Latin American economies joining the OECD club, the act of going through the acceptance process can turn out to be as beneficial as the membership itself. Continue reading Colombia’s Accession To The OECD: Expected Benefits In Light Of The Mexican And Chilean Experiences
A common question for many Mexicans in the past months has been “Why is it that the inflation index (INPC) keeps showing moderate price increases while everyone struggles to make it with the same budget?” We present some of the facts that allow for an explanation of why inflation as measured by INEGI (Mexican Statistics Agency) could be understated. Continue reading Why Mexico INEGI´s reported inflation may be understated
The perception that LatAm as a region is less fundamentally exposed to the Brexit fiasco than other emerging markets is borne out by the data. Brazil and Colombia conduct a large amount of trade with the U.K. and the rest of Europe as a share of their total Continue reading Brexit and Latin American Exports
We explain why we think that recession odds for Mexico are higher than most think. Car exports, gross fixed investment and cyclical indicators all stood in recession ground according to latest data. On the policy side, fiscal and monetary tightening are a no-no and we all know Donald Trump will not help ahead if his winning chances spike. Continue reading Is Mexico Heading For Recession?
Last week, we wrote about the effects that deliberate cuts in Venezuelan imports could have on its neighbors. We are extending that analysis to see how the major economic crises in the region, Brazil, Ecuador and Venezuela, affect trade and growth in other countries.