Latin America News
LAST UPDATE: June 25, 2025
FMI: Envejecimiento de la población resta un cuarto de punto al crecimiento potencial de Chile
The IMF notes that Chile’s working-age population will grow just ~0.15% annually between 2025–2035. This demographic slowdown will reduce the country’s employment growth to ~0.2–0.3%, versus ~0.8% in comparable economies—cutting Chile’s potential GDP growth by roughly 0.25 percentage points.
Insight
The demographic drag from an aging population presents a structural constraint on Chile’s future growth. To compensate, Chile must enact productivity-boosting reforms and accelerate labor force participation, particularly among women and older workers.
Trump Set on Tariff Demands as Canada Negotiations Head Towards Deadline, Canadian Ambassador Says
According to Canada’s ambassador, President Trump is insisting on tariff concessions as a condition for a trade deal, complicating talks close to a deadline.
Insight
Trump’s focus on tariffs reflects a leverage strategy but raises fears in Canada that access to the U.S. market may be jeopardized if consensus isn’t reached soon.
US, Mexico Eye Import Quota in Trade Talks on Steel Deal
The U.S. and Mexico are discussing a quota system allowing up to 88% of Mexico’s previous-year steel exports to the U.S., offering an alternative to blanket tariffs.
Insight
A quota-based compromise could balance U.S. domestic industry protection with supply stability, maintaining U.S.–Mexico economic cooperation.
Brazil’s Haddad says debate over increasing public spending is frozen
Brazil’s Finance Minister Fernando Haddad stated that there is no active discussion on raising public spending, indicating fiscal discipline despite political pressure to increase social investment.
Insight
Haddad’s stance aims to reassure markets that fiscal prudence remains intact, helping maintain investor confidence even as social demands rise.
