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UPCOMING WEBINAR - CAUCASUS AND CENTRAL ASIA: ECONOMIC UPSWINGS AND POL...

Waiting for the Plan
MEXICO · Report · 30 Jul 2013

Executive Summary Early in the week the United Nation’s Economic Commission for Latin America and the Caribbean (ECLAC) downwardly adjusted its growth estimates for the current year for Mexico (from 3.5% to 2.8%) and for other countries in the region. Combined with the lowered forecast for Brazil...

Energy Reform and Protest
MEXICO · Report · 30 Jul 2013

Executive Summary The path to reforming Mexico’s petroleum sector remains somewhat clouded as the two main opposition parties have staked out diametrically opposed plans, and the PRI has yet to clearly define a proposal of its own. Further complicating matters is the extent to which the PAN remai...

Will Ukraine Fall?
UKRAINE · Report · 30 Jul 2013

Executive SummaryUnprecedented social unrest, coming on atop severe economic problems, could lead to massive investor and capital flight. It’s hard to pinpoint just how or when that might happen -- but we foresee things proceeding along an extremely turbulent path in the runup to the 2015 preside...

Goodbye, “Made in China”
CHINA · Report · 30 Jul 2013

Executive Summary Premier Li Keqiang says he will defend the “bottom line” for China’s economic growth. But what is that? Some suggest it’s the 7% GDP growth target; others that it’s 7.5%. Per the second view, 7.5% was achieved in Q2, and is already the bottom line. A third view is that Li has...

Inflation Report Highlights
TURKEY · Report · 30 Jul 2013

The big change today was the upward revision of the end-2013 inflation forecast to 6.2% (from 5.3% previously), mainly on account of higher oil prices and weaker lira assumptions. The revision is slightly more than our expectation, but still lower than where we think inflation will end up by the ...

Rougher Riding
COLOMBIA · Forecast · 29 Jul 2013

Executive SummaryUnder the government and central bank’s balance of payments outlook for 2013-2017, the current account deficit is expected to peak this year and next at 3.4% of GDP, then fall to below 3% of GDP by 2017. But the capital account surplus is on track to fall from 4.3% this year to 3...

Political Insights: Week of July 29
BRAZIL POLITICS · Report · 29 Jul 2013

Congress resumes activity on Thursday, but voting will begin next week. This week we highlight the economy, with the release of the commercial balance for July, industrial production for June and other indicators. Dilma’s interview Sunday’s Folha newspaper contained a three-page interview with Pr...

Unemployment May Rise Slightly
BRAZIL ECONOMICS · Report · 29 Jul 2013

Explaining the behavior of unemployment in Brazil in recent years has been a challenge. It rose only slightly during the crisis of 2008, when Brazil faced a recession, and for the past year and a half it has remained roughly stable in seasonally adjusted terms (Graph 1), even with the progressive...

Less Growth and No Success in Reducing Inflation
BRAZIL ECONOMICS · Forecast · 29 Jul 2013

Executive Summary We have reduced the projections for GDP growth to 1.9% in 2013, and to 2% in 2014. Inflation will remain high (6% in 2013 and 6.5% in 2014); the exchange rate should stay in the range of R$2.25/US$ in 2013 and RS$ 2.30/US$ in 2014; and the trade surpluses should decline to US$ 5...

Growth Outlook Bleak
INDIA · Forecast · 29 Jul 2013

Executive SummaryProduction continues to slow: GDP grew at 4.8% y/y in Q4 (Jan-Mar) of 2012-2013, and non-agricultural GDP grew 5.3%. Industrial production has likewise slipped, contracting 1.6% y/y in May. A task force has been set up to track stalled projects in key power, coal, mines and road ...

Weekly Tracker: July 28-Aug 3
TURKEY · Report · 28 Jul 2013

Executive Summary The government efforts to isolate the conspirators behind the Gezi Parki demonstrations have turned into heavy-handed prosecution against organizers and a purge in the media. The witch-hunt appears to have spread to the corporate sector as well, where a draconian tax probe was l...

Weekly Tracker: July 28-Aug 3
TURKEY · Report · 28 Jul 2013

Executive Summary The government efforts to isolate the conspirators behind the Gezi Parki demonstrations have turned into heavy-handed prosecution against organizers and a purge in the media. The witch-hunt appears to have spread to the corporate sector as well, where a draconian tax probe was l...

Currency Struggling for Stability
INDONESIA · Report · 28 Jul 2013

Executive Summary We may see rupiah depreciation deepen, given intensifying public purchases of dollars and waning confidence in the Central Bank’s ability to defend the currency. Having topped Rp. 10,000 per dollar, and drifting lower, the rupiah is now seeking a new equilibrium level. Sev...

Peru’s Winter of Our Discontent
PERU · Report · 26 Jul 2013

Executive SummaryThe most unusual of Peru’s recent spate of protests was a spontaneous uprising organized via social media, against the appointments of six Constitutional Tribunal judges and an ombudsman. Instead of choosing qualified candidates, Congress parceled the posts out among political pa...

Sicad 2 Disappoints
VENEZUELA · Report · 25 Jul 2013

Executive Summary Nicolás Maduro has had a busy month filled with activities at home and abroad designed to show him firmly in control of the presidency. Meanwhile, repression against opposition politicians continues. The PSUV seems to be trying to silence the opposition by harassment. Venezuela’...