Latin America News
LAST UPDATE: July 15, 2025
Brazil economic activity posts unexpected drop in May
Economic activity in Brazil declined unexpectedly in May, with industrial output down and flat services. The IBC‑Br index fell, influenced by monetary tightening as interest rates rose sharply to curb inflation.
Insight
The surprise contraction underscores the downside risk from aggressive rate hikes. Slowing momentum in both industry and tax revenue suggests possible stagflation risks and challenges for policymakers balancing inflation and growth.
Mexico retailers poised for Q2 bump despite inflation rebound
Mexican retailers are expected to see strong Q2 results thanks to favorable timing of holidays (Easter), promotional events, and profit-sharing bonuses. Companies like Walmex and Chedraui are boosting private labels and loyalty strategies to counter stubborn inflation.
Insight
Retailers are adapting effectively to inflation pressures with tactical offerings and promotions, but underlying economic concerns (high inflation, weak growth, remittance drop) may limit sustainability of current consumer demand.
US must do its part on security, Mexican president says after tariff threat
In response to then-President Trump’s 30% tariff threat on Mexican imports over fentanyl concerns, President Claudia Sheinbaum called for U.S. responsibility in halting arms flow and prosecuting traffickers on U.S. soil. A bilateral security deal is nearly ready but will not allow U.S. forces operating in Mexico.
Insight
Mexico asserts parity in security cooperation demands and sets sovereignty limits. The nearing agreement, if successful, could defuse trade tensions, though refusal to allow U.S. forces reflects red lines in bilateral trust.
Canada Wholesale Sales Edge Up 0.1% in May
Canada’s wholesale trade increased modestly by 0.1% in May to C$84.2 billion, slightly exceeding expectations. Gains were driven by personal and household goods, partly offset by weaker machinery sales.
Insight
The small uptick indicates a cautiously improving wholesale segment, signaling resilience in consumer-related goods but softness in investment-linked categories, suggesting uneven recovery dynamics.
Chile Private Debt Market Set to Return to Heady Days of Growth
Chile’s private debt market is growing, with asset managers overseeing $6.6 billion in private debt in Q1, indicating revived investor appetite in this segment.
Insight
The rebound signals growing investor confidence in alternative credit markets in Chile, potentially boosting capital availability for private firms even as traditional financing remains volatile.
US Judge Extends Argentina’s YPF Handover Deadline by Three Days
A U.S. judge granted Argentina a three-day extension to complete the handover of a 51% stake in energy company YPF, delaying previous deadline tied to legal proceedings.
Insight
The brief extension offers Argentina limited breathing room in high-stakes asset negotiations, suggesting ongoing legal complexity and urgency around its energy sector reforms and creditor relations.
Trump Piles Fresh Sanctions on Cuba’s Flailing Tourism Industry
The U.S., under President Trump, has imposed new sanctions targeting Cuba’s struggling tourism sector, which is critical for Havana’s foreign exchange revenues.
Insight
This move represents a further intensification of economic pressure on Cuba, leveraging sector-specific sanctions to weaken government income streams. It underscores U.S. intention to isolate Cuba economically by targeting its key revenue-generating industries.
Argentina inflation ticks up less than expected in June
Argentina’s June inflation rose modestly to 1.6%, up from 1.5% in May, but remained below forecasts of 1.9%. Year-on‑year inflation declined to 39.4% from 43.5%, slightly under projections.
Insight
The slow rise reflects the ongoing impact of President Milei’s austerity policies, indicating stabilization. The deceleration in the annual rate may boost investor sentiment, though inflation remains high.
