Latin America News
LAST UPDATE: May 28, 2025
OECD Recommends Further Rate Cuts in Canada Should Trade Conflict Cause Economy to Deteriorate
The OECD suggests that the Bank of Canada consider additional rate cuts if the economy weakens significantly due to U.S. tariffs, provided long-term inflation expectations remain stable.
Insight
The OECD’s recommendation underscores the delicate balance Canada must maintain between stimulating growth and controlling inflation amid escalating trade tensions with the U.S. While rate cuts could support economic activity, they risk fueling inflation if not carefully managed. This guidance reflects broader concerns about the impact of protectionist policies on global economic stability and the challenges central banks face in navigating such uncertainties.
Latin America trade halt with China would be disaster, says outgoing OAS chief
Outgoing OAS Secretary-General Luis Almagro warns that severing trade ties with China, as urged by U.S. pressure, would lead to a catastrophic economic fallout for Latin America.
Insight
Almagro’s comments highlight the region’s deep economic integration with China, which has become a primary trading partner for many Latin American countries. U.S. efforts to curb these ties risk destabilizing economies that rely heavily on Chinese markets for exports. The situation illustrates the geopolitical tug-of-war influencing trade policies and the potential consequences of forced realignments on regional stability and development.
Argentina Claims Return to Global Markets With Peso Bond Sale
Argentina announces a five-year peso-denominated bond aimed at international investors, marking its re-entry into global financial markets.
Insight
This bond issuance signifies Argentina’s attempt to restore investor confidence and access international capital following periods of economic instability. By offering peso-denominated bonds purchasable in U.S. dollars, Argentina aims to attract foreign investment while managing currency risks. Success depends on the country’s ability to maintain economic reforms and stabilize its financial environment to reassure investors.
Argentina ratifies WHO withdrawal during US health chief’s visit
During a visit by U.S. Health Secretary Robert F. Kennedy, Argentina confirms its decision to withdraw from the World Health Organization, citing dissatisfaction with its handling of the COVID-19 pandemic.
Insight
Argentina’s withdrawal from the WHO reflects a broader shift towards aligning with U.S. policies under the Trump administration, emphasizing national sovereignty over multilateral cooperation. This move may have implications for Argentina’s access to global health resources and its role in international health governance. It also raises concerns about the politicization of health decisions and the potential impact on public health outcomes.
