Latin America News
LAST UPDATE: June 27, 2025
IMF Concludes Article IV Mission: Curaçao Shows Strong Growth, But Structural Reforms Remain Vital
Curaçao Chronicle / IMF
The IMF’s 2024 Article IV mission reported 4.2% GDP growth in 2023 driven by tourism and construction. Inflation fell to 3.5% from 7.4%, and fiscal surpluses helped reduce debt. Structural reforms advanced under the “landspakket” included financial sector supervision, tax, permits, and digital infrastructure. However, vulnerabilities persist: healthcare, pensions, informal employment, and climate adaptation.
Insight
While short-term growth is robust, sustained prosperity requires diversifying beyond tourism, improving public services (healthcare, pensions), formalizing labor markets, and strengthening climate resilience and financial buffers.
Chile Central Bank Policymaker Sees Good Omens After Long Inflation Fight
Chile’s central bank recently signaled readiness to lower rates now that inflation shows signs of easing. Inflation has slowed in recent months (e.g., April CMOs), reflecting earlier rate increases. Policymakers noted that the economy is stabilizing, and peso bonds are gaining renewed investor interest.
Insight
With inflation cooling and bond markets stabilizing, the central bank seems ready to pivot from a restrictive stance, potentially supporting renewed growth while monitoring upside price risks.
Wars, Trump and Climate Malaise: Brazil Braces for a Tough COP30
As COP30 approaches in November 2025, Brazil faces a geopolitical and climate credibility challenge. Ongoing global conflicts (e.g., Ukraine, Middle East), U.S. trade/dev policy under Trump, and a waning focus on climate are weighing on summit preparations. Delegates fear lack of ambition, while domestic infrastructure and political issues persist.
Insight
Brazil must counteract geopolitical distractions by reinforcing international climate cooperation and mobilizing non-state actors at COP30 to reframe the narrative and deliver tangible pledges beyond mere diplomacy.
