Latin America News
LAST UPDATE: September 18, 2025
FMI: Organismo designa a Nigel Chalk como Director del Departamento del Hemisferio Occidental
The IMF appointed Nigel Chalk as Director of its Western Hemisphere Department, effective October 27, 2025. He previously served as Deputy Director, overseeing programs in countries including Argentina, Brazil, and Canada.
Insight
Chalk’s promotion signals policy continuity and could strengthen IMF engagement in Latin America, where economies face inflation, currency instability, and political turbulence. His deep regional experience may help with smoother negotiations on lending programs.
Bank of Canada Resumes Rate Cuts to Address Weak Job Market, Diminished Inflation Risk
The Bank of Canada cut its key rate by 25 basis points to 2.50%, citing a weakening labor market and reduced inflation risks. This marked its first cut in six months.
Insight
The shift indicates growing concern over economic slowdown outweighing inflation fears. It could shape market expectations for further easing and influence household and business borrowing decisions.
Argentina’s economy expands 6.3% in second quarter
Argentina’s GDP grew 6.3% year-on-year in Q2 2025, driven by investment and gains in construction, tourism, and finance, though activity dipped slightly compared with the previous quarter.
Insight
Strong annual growth suggests recovery momentum, but the quarterly decline highlights fragility. Stability will depend on inflation control and policy credibility amid political uncertainty.
Argentina Disputes Peso Crossed Threshold, Citing Technicality
The government argued that a breach of its peso trading band was due to a technicality, disputing whether it violated IMF program terms.
Insight
The episode underscores fragile currency management and market sensitivity to IMF conditions. Disagreements over definitions may strain investor confidence and complicate IMF relations.
Milei’s Disapproval Rating Hits New High as Midterm Lead Shrinks
President Javier Milei’s disapproval rating reached a new peak as his coalition’s lead over the opposition narrowed before midterm elections, amid bribery allegations involving his sister.
Insight
The rising disapproval highlights political risks that could weaken Milei’s reform agenda. Growing public mistrust may force his government into concessions to maintain legislative support.
Mexico begins public consultation process for USMCA ahead of review
Mexico launched a 60-day public consultation on the United States-Mexico-Canada Agreement (USMCA) ahead of its 2026 review, with the US and Canada preparing similar consultations.
Insight
Public input could influence the upcoming review, shaping negotiations on trade rules. It also signals the high stakes for North American supply chains and political debate over the deal’s future.
Ecuador president expects economic growth of 4.5%, well above central bank estimate
President Daniel Noboa forecasts GDP growth of 4.5% for 2025, significantly higher than the central bank’s revised estimate of 3.8%. He cites strong first-half growth and lack of power outages as reasons for optimism.
Insight
The discrepancy between political optimism and institutional conservatism points to tension in economic planning; if growth meets president’s expectations, it may bolster his credibility, but if not, it risks undermining trust and fiscal discipline.
Chile’s Presidential race kicks off with security and stability dominating campaigns
Ahead of the November 16 election, leading candidates are emphasizing security and stability. Jeannette Jara and José Antonio Kast are tied in polls; Evelyn Matthei trails.
Insight
The focus on law and order reflects voter concerns over rising crime and insecurity, which may advantage conservative candidates. It also suggests a broader ideological shift in Chile and potentially Latin America.
US Treasury official to visit Mexico City to discuss cartels
U.S. Treasury Under Secretary John Hurley will meet Mexican officials and private sector leaders to discuss disrupting cartel financing and illicit trade.
Insight
The visit highlights Washington’s emphasis on financial tools in the drug war and pressure on Mexico to strengthen enforcement. It reflects a shift from purely military solutions toward economic and regulatory approaches.
Colombia vows to fight drug trade ‘with or without’ the US
Colombia’s military pledged to continue fighting the drug trade regardless of U.S. support, following tensions over aid and accusations that Bogotá failed U.S. counter-narcotics expectations.
Insight
The stance underscores Colombia’s bid for greater sovereignty in security policy, while raising questions about future cooperation with Washington. It may prompt Bogotá to explore alternative international partnerships.
