Latin America News
LAST UPDATE: September 16, 2025
Argentina draft 2026 budget sees economy growing 5% in 2026
Argentina’s draft 2026 budget projects GDP growth of around 5%, inflation falling to 10.1%, and a fiscal surplus of 1.5% of GDP with a 0.3% financial surplus after debt payments.
Insight
The projections reflect Milei’s attempt to combine fiscal discipline with growth and inflation control; meeting those targets will require tight execution amid political resistance and economic volatility.
Mexico Tariff Plan Is Stopping Chinese Investment, Says Chamber
Mexico’s proposed tariff plan is discouraging Chinese investment, particularly in the automotive, auto-parts, and metallurgy sectors, according to a local business chamber.
Insight
The move illustrates tension between trade protectionism and foreign investor confidence. While tariffs may protect domestic industries, they risk deterring foreign investment and slowing industrial development.
Ecuador’s central bank raises 2025 GDP growth forecast
Ecuador’s central bank raised its 2025 GDP growth forecast to 3.8% from a previous estimate of 2.8%, driven by stronger exports and local demand; growth in 2026 is expected to slow to 1.8%.
Insight
The upgrade suggests Ecuador is experiencing a short-term recovery, but the lower 2026 forecast signals potential structural or external economic challenges ahead.
U.S. says Colombia, Venezuela failed to fight drug trafficking
The U.S. declared that Colombia and Venezuela failed in their international counternarcotics obligations over the past year, which could affect future aid.
Insight
This designation highlights U.S. concern over narcotics control in the region and may increase diplomatic pressure while impacting aid and cooperation.
Trump says US struck another alleged Venezuelan drug vessel, killing three
Former President Trump said U.S. forces struck a Venezuelan drug vessel in international waters, killing three people, marking another escalation in anti-drug operations.
Insight
This strike highlights an aggressive U.S. stance on drug trafficking and could raise tensions with Venezuela while sparking debates over legality and diplomacy.
Innovation investment growth at 15-year-low: UN
The UN reported that global investment in innovation is growing at its slowest rate in 15 years, with projected R&D growth at just 2.3% for 2025.
Insight
Sluggish innovation investment raises concerns about long-term global competitiveness and technological advancement, particularly in developed economies.
