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Swallowing frogs
COLOMBIA · Report · 04 Sep 2018 · 1 response

A new concept is taking shape in Colombia: a president without a congressional majority. Though we’ve yet to see how such an arrangement could work in Colombia, the experiences of neighboring governments, like Vicente Fox’s in Mexico and Pedro Pablo Kuzcynski’s in Peru, are not encouraging. C...

The MPC signals that tightening could be approaching
ISRAEL · Report · 04 Sep 2018

Recent economic indicators point to slowing PC demand domestically, supporting a low inflation environment. The last policy statement had a somewhat hawking bias. Although a rate hike cannot be ruled out this year, much will depend on the shekel and inflationary trends. It is more likely to occu...

Synthesis of the Brazilian economy
BRAZIL ECONOMICS · Report · 03 Sep 2018

With less than a month to go before the first presidential election round, without any inkling of which two candidates will advance to the second round, the economic scenario depends as never before on political outcomes. Although some observers try to minimize the differences in the candidates’ ...

​The end of fiscal gradualism
ARGENTINA · In Brief · 03 Sep 2018

The economic turbulences of the last week which drove, among others, the FX rate above 40 AR$/US$, induced president Macri to give today a rather motivational address to the nation. He announced changes in its cabinet and Argentina's economic policy. In short, he proclaimed an acceleration in tim...

The Allure of Bread and Circuses
INDONESIA · Report · 03 Sep 2018

The 2018 Asian Games began a few days ago, and the headlines have been filled with stories of the athletes’ heroic achievements. Just as in the Roman Empire, this grand event has managed to draw public attention away from various problems, such as the heated preparations for the presidential elec...

PT may replace Lula with Fernando Haddad
BRAZIL POLITICS · Report · 03 Sep 2018

After a decision from the Superior Electoral Court, the PT may replace Lula with Fernando Haddad as the party’s presidential candidate. The Lower House and Senate hold a “concentrated effort .The elections and holiday (September 7) may interfere with legislative work. In the Supreme Court, conti...

The longest and deepest cycle in Brazil’s history
BRAZIL ECONOMICS · Report · 03 Sep 2018

The GDP result for the second quarter reinforces our projection that the economy will only grow by 1.0% in 2018. However, the second-quarter performance cannot be attributed wholly to the truckers’ strike. It unquestionably played a role, but the most recent numbers confirm that after the effects...

Why is the economy in a significant slowdown?... and what to we expect in the short term
PANAMA · Forecast · 03 Sep 2018

Our growth projections for 2018 (3.8%) are lower than what international analysts have argue. ECLAC projects 5.2% growth for the year despite a month-long labor strike in the construction sector from mid-April to mid-May (construction represents almost twenty percent of GDP). IMF is not so optimi...

A fresh debate over GDP measurement, and historical growth
INDIA · Report · 03 Sep 2018

The GDP measurement debate was reignited by a government committee that proposed a historical (“back”) series that accentuated the superiority of GDP growth during the 10 years of the UPA, compared with the four years of the present government. Many economists mechanically interpret GDP data, ...

Beijing has its back to the wall
CHINA ADVISORY · Report · 03 Sep 2018

Visiting Beijing nowadays is like marching into a former war zone where the mines have not been removed. It’s not clear how many there are or where they are located but everyone is fearful they are out there somewhere. Financial regulators, foreign diplomats, corporates and private citizens are s...

Inflation nears 18%, the CBRT says I’ll “adjust”
TURKEY · In Brief · 03 Sep 2018

Consumer prices rose by a somewhat higher than expected 2.3% in August, m/m, taking the 12-month rate to just under 18% (from 15.8% in July), while producer prices surged by a massive 6.6% in the month, with the 12-month rate rising to 32.1%, from 25% in July (Graph 1; Table 1). Needless to say, ...

Lula cannot run for president
BRAZIL POLITICS · Report · 02 Sep 2018

​The Superior Electoral Court (TSE) has just rejected the registration of former president Lula as a presidential candidate.Lula’s defense team can appeal, but the decision remains.Even if the defense team appeals to the TSE itself or the Supreme Court, the Electoral Court’s decision is remains e...

Racing against time
TURKEY · Report · 02 Sep 2018

As autumn sets in, Turkey is under unprecedented pressure from markets and erstwhile ally US. Later in September, Assad’s attack on Syrian border province Idlib could create a new set of headaches for the country. President Erdogan and his administration are reacting to the pressure by announcing...

DataPoder360 Poll: The presidential race is still unpredictable
BRAZIL POLITICS · Report · 30 Aug 2018

The telephone poll released today, August 30, by DataPoder360 confirms the strength of Lulismo and Jair Bolsonaro (PSL) as the leaders of the presidential race at this time, just before the beginning of the airing of electoral ads on radio and TV. Their strength can be explained by their narrativ...

The race towards 2020 elections already started; Fernández pulled ahead
DOMINICAN REPUBLIC · Report · 30 Aug 2018

Although others had formally launched their pre-campaign activities aimed at getting the PLD nomination for the presidency, the rally staged by former President Leonel Fernández to inaugurate his pre-campaign was the one that marked the beginning of the race to the 2020 presidential election. He ...