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Modest recovery faces internal and external challenges
ISRAEL · Report · 29 Apr 2025

Israel’s economy continued to expand in the first quarter of 2025, although the level of activity remained below its potential trajectory. Despite the ongoing recovery, the economy has clearly not yet returned to full productive capacity. On the geopolitical front, the overall risk environment...

Trump’s peace deal: a fairy tale that ends in failure
UKRAINE · Report · 29 Apr 2025

Despite the hullabaloo over "peace deal" progress over the past month, nothing has fundamentally changed: Russia continues its intense missile and drone strikes against Ukrainian cities and towns, and heavy fighting along the frontline persists. U.S. President Donald Trump's "peace by force" appr...

The latest poll shows a slight decline in Lula’s disapproval rating, the União Progressista merger party should be formalized today, and Lula is expected to meet with union leaders today, ahead of the Labor Day holiday on May 1
BRAZIL POLITICS · Report · 29 Apr 2025

The latest Latam Pulse Brazil/AtlasIntel poll, released yesterday, April 28, shows a slight decline in President Lula’s (PT) disapproval rating. Although disapproval remains higher than approval, the negative rating fell from 53.6% to 50.1%. Today, União Brasil (UB) President Antônio Rueda and Pr...

Slowdown and trepidation
CENTRAL AMERICA · Report · 29 Apr 2025

El Salvador’s economic trends in 2024 looked like a return to the long-run results characteristic of the pre-pandemic decade: relatively weak economic activity, growth of 2% to 2.5% y/y; weak public sector results, leading to very high public debt; and worries about long-run fiscal sustainability...

Economics: Consumer confidence extends its slide as employment weakens; a further erosion of consumption is possible
MEXICO · Report · 29 Apr 2025

Mexico’s consumer confidence index deteriorated in its latest reading, prompting some analysts to note that it foreshadows a greater deceleration of private consumption for the coming months. It is important to consider that the index allows anticipating the behavior of consumption in certain co...

Fiscal cost of election campaign spending increases
HUNGARY · In Brief · 29 Apr 2025

The other day, Economy Minister Nagy confirmed that the members of armed services (soldiers, policemen, etc., about 100k people) will be entitled to another one-time bonus payment, equal to 6-month worth of salaries, in February next year, and that the government are going to earmark some HUF450b...

Politics: The National Development Plan—where is Mexico headed?
MEXICO · Report · 28 Apr 2025

Mexico’s immediate future will largely be determined by the National Development Plan (NDP). The 2025-2030 version of the plan was recently approved by Morena and its allies in Congress. The plan had sparked optimism in some business circles given the perception—and hope—that President Claudia Sh...

The PL rethinks the Amnesty Bill and other weekly topics
BRAZIL POLITICS · Report · 28 Apr 2025

The Labor Day holiday on Thursday, May 1, is expected to slow political and judicial activity in Brasília. On Tuesday, April 29, the PP and União Brasil will formalize the creation of their new party federation, União Progressista. The PSDB and Podemos may also announce a merger. On Saturday, May...

Inflation: bad now, higher uncertainty ahead
BRAZIL ECONOMICS · Report · 28 Apr 2025

In recent months, there has been an acceleration in underlying inflation measures and an increase in the diffusion index. Industrial goods prices have also accelerated, reflecting the depreciation of the real throughout 2024. Since exchange rate pass-through occurs with a lag, it is possible that...

One step back and one step forward in boosting growth: the impact of U.S. tariffs and progress on the mine’s reopening
PANAMA · In Brief · 28 Apr 2025

Assessing the potential impact of U.S. tariffs on Panama’s economyThe U.S. administration suspended country-specific tariffs for 90 days starting April 9 but maintained the 10% baseline tariff on all goods and countries, including Panama. It remains unclear whether the U.S. government will ultima...

Mexico Macro Monitor: In the first quarter of 2025, the trade balance recorded a high surplus due to an increase in non-automotive manufacturing exports and a reduction in consumer and capital imports
MEXICO · In Brief · 28 Apr 2025

In January-March 2025, the trade balance recorded a surplus of 1,097 USD million which compares to a 2,706 USD million deficit in the same period of the previous year. This result meant that the negative trade balance observed in January was offset by surpluses in February and March. CHART 1 Trad...

Keep arguing, guys
VENEZUELA · Report · 28 Apr 2025

Nine months after the 2024 presidential elections, the Maduro government is consolidating its political position but faces the suspension of oil licenses and the secondary tariffs imposed by the United States on countries that purchase Venezuelan oil, already perturbing the fragile economic norma...

This week will be slow due to the Labor Day holiday on May 1, the União Brasil and PP parties will officially form a party federation tomorrow, and PSD and Podemos parties may also formalize a merger
BRAZIL POLITICS · Report · 28 Apr 2025

Due to the May 1 holiday (Labor Day) on Thursday, this will be a quiet week in both Congress and the Judiciary. Over the past two years, Lula has taken part in Labor Day events in São Paulo, but the rallies drew low turnout. As a result, his participation this year remains uncertain. Tomorrow, th...

What Xi Jinping won’t do
CHINA ADVISORY · Report · 28 Apr 2025

Many outsiders tend to view Xi Jinping as a rational economic actor who implements policy with an authoritarian hand, who would make the same decisions economically that the U.S. would. However, that is not always true. The priorities of the Chinese state often differ from those of the U.S. There...

Tough and eerie times
TURKEY · Report · 27 Apr 2025

The 6.2 Richter scale tremor that shook Istanbul but caused very minor damage is a stark reminder that we are sitting on a time bomb. There is consensus among seismologists that Istanbul is due for a 7.2-7.4 quake “sometime in the future”. Of course, the question is when. On exact timing, experts...