GlobalSource Partners | Country Insights

* The 9% tax could raise as much as 1.6% of GDP in incremental revenue, similar to the VAT. * A higher rate of up to 15% is expected to be applied to large multinationals, but has not been specified yet. * The change is motivated more by compliance with BEPS than the need for fiscal revenue. *...

Costa Rica: Monetary Policy Report 2022-2023

CENTRAL AMERICA · Report · 01 Feb 2022

On January 28, the Central Bank of Costa Rica released its Monetary Policy Report for 2022-2023 (previously known as the "Macroeconomic Program"). The main indicators can be found in our report. The Central Bank included preliminary estimates for 2021, with better results than expected in some...

Russia's pandemic/political update: war of words in parallel worlds

RUSSIA ECONOMICS · Report · 01 Feb 2022 · 1 response

As the Omicron strain entered Russia, the country’s daily COVID-19 incidence rate soared, having nearly attained 100K cases on January 28, and continued its upward journey quite fast in the days that followed, having reached nearly 126K as of February 1. This was not an unexpected increase as the...

The Supreme Federal Court returns from recess, Bolsonaro addresses the fuel issue, and the presidential candidates continue to make moves

BRAZIL POLITICS · Report · 01 Feb 2022

The Supreme Federal Court has scheduled a court session to mark the beginning of the year for the Judiciary. The year will begin with a few points of tension. Bolsonaro did not appear for his testimony at the Federal Police last week, disregarding a decision by Minister Alexandre de Moraes. Bolso...

Peru: New political crisis looms

PERU · In Brief · 31 Jan 2022

A few minutes ago, Ms. Mirtha Vasquez, the Prime Minister, resigned. This follows last week resignation of interior Minister, Mr. Avelino Guillen on the back of President Castillo decision to support General Gallardo in the police and failing to back his plan to clean up the police. Although the ...

Tokayev disempowers Nazarbayev even more

CIS POLITICS · In Brief · 31 Jan 2022

On January 28 the president became leader of the ruling party: Nur Otan. Nazarbayev has also been removed as the chair of the people's assembly. He retains the title "Leader of the Nation". However, that appears to be meaningless. Some members of Nur Otan are unhappy at the way January's unrest w...

Costa Rica: Elections critical for the IMF deal and macroeconomic performance

CENTRAL AMERICA · Report · 31 Jan 2022

Costa Rica´s presidential election is around the corner. With a record number of candidates, growing voter dissatisfaction and a large percentage of undecided voters, the winner is still uncertain. Four candidates are struggling to win a spot for the second round in April. Their economic views re...

Politics: Institutional weakening – a severe threat to Mexico’s development

MEXICO · Report · 31 Jan 2022

Policies to promote economic modernity since the 1980s and political democratization from the beginning of the century until 2018 created a good, but fragile and insufficient institutional framework in Mexico. Such policies included expanded freedoms for private sector participation in previously...

The race for the center and other weekly topics

BRAZIL POLITICS · Report · 31 Jan 2022

The Judiciary and Congress return to work this week. In Congress, no significant votes are expected for this week. In terms of the economy, the first Copom meeting to decide the basic interest rate should be highlighted. Anatel judges the sale of Oi on Monday, January 31. Two new polls on the pre...

Monetary Policy Committee minutes: the NBU planned to hike policy rate by 2ppt but calmed down eventually

UKRAINE · In Brief · 31 Jan 2022

The minutes of Monetary Policy Committee (MPC) meeting revealed a very interesting point. A majority of MPC members supported the idea to hike the policy rate by 2 ppts up to 11% already in January. One member even claimed that a 12% policy rate is a proper level for current uncertainty. The "Rus...

Synthesis of the Brazilian Economy

BRAZIL ECONOMICS · Report · 31 Jan 2022

Although still in the phase of accelerated growth in the country at large, there are signs that the outbreak of the Omicron variant is stabilizing in the states of São Paulo and Rio de Janeiro. As has been detected in other countries, the new variant is highly transmissible but less lethal in peo...

Economics: January data show growing challenges for the Mexican economy in 2022

MEXICO · Report · 31 Jan 2022

The economic news published in January provides further evidence that the most immediate hurdles facing the Mexican economy this year include the upsurge in inflation and the extent to which the recovery has been losing steam. Those challenges emerge at a time when public finance continues to wea...

Congress and the Judiciary resume activity, two new polls on the presidential election will be published, and Anatel holds an extraordinary meeting

BRAZIL POLITICS · Report · 31 Jan 2022

The Judiciary returns on Tuesday, and the Legislature returns on Wednesday. There are no relevant bills on the agenda in either the House or the Senate, but there are a number of other matters on the congressional agenda. The issue involving President Jair Bolsonaro's failure to testify at the Fe...

Envisioning a green industrial park

INDONESIA · Report · 31 Jan 2022

On several occasions, especially during the G20 meeting in Rome, as well as the recent COP 26 meeting in Glasgow, Indonesian President Joko Widodo stated that the Indonesian government envisions a green industrial park to be located in Northern Kalimantan Province. In fact, to show that the state...

Robust labor data (despite Omicron) is rate hike supportive

ISRAEL · Report · 31 Jan 2022

1. The labor market improved in the first half of January despite the deceleration impact of Omicron. 2. The Omicron wave appears to be peaking, and restrictions on schools and other activities are gradually being lifted. 3. We have updated our inflation forecast in February to 0.4%...