NEWS FLASH

UPCOMING WEBINAR - CENTRAL AMERICA OUTLOOK: COSTA RICA, EL SALVADOR, GU...

GDP outlook worsens 10 days after demonetisation
INDIA · In Brief · 19 Nov 2016

It has now been more than ten days after the Prime Minister of India announced that the Rs 500 and the Rs 1000 notes will no longer be legal tender. The shock to the economy has not eased as hoped. Instead, the impact is spreading across the economy. At present various sectors are seeing an actua...

Taxes Down, Wages Up Sharply
HUNGARY · Report · 18 Nov 2016

Given improved financial fundamentals, Hungary is well positioned for market volatility from the unpredictability of the upcoming US administration. Furthermore, PM Orbán was one of the few government heads expressing support for Donald Trump before the vote, potentially earning some goodwill for...

Economics: Pemex Plan: Lingering Doubts
MEXICO · Report · 17 Nov 2016

Last week, after a wait of several months, Petróleos Mexicanos announced its 2016-2021 Business Plan. CEO José Antonio González Anaya had been mentioning this plan since August, saying that it would define Pemex’s strategy and actions for the next five years, to overhaul the financial situation ...

Politics: Bracing for a Trump Administration
MEXICO · Report · 17 Nov 2016

The election of Donald Trump as the next president of the United States has major implications for Mexico. The country was a central theme of the Republican campaign, and a good number of the president-elect’s campaign promises are directly related to Mexico. Some of them, such as repeal of t...

3Q16 GDP Accelerates
PHILIPPINES · In Brief · 17 Nov 2016

Bucking expectations, the local economy grew 7.1% in 3Q16, faster than the previous two quarters. The surprising performance was due to: (a) continuing strong household consumption, particularly on food and transport items; (b) sustained robust growth in fixed capital, with private construction b...

Facing Challenges
BRAZIL ECONOMICS · Report · 16 Nov 2016

Despite important political victories, such as approval in the Chamber of Deputies of the proposed constitutional amendment (PEC) to cap real spending growth, in the next fiscal policy moves the government will face substantial difficulties. The first is the worse outlook for growth in 2017, whic...

Abandoning the Ostracism?
ECUADOR · Report · 16 Nov 2016

On November 11, Juan Carlos Cassinelli, Minister of Trade finally signed the accession of Ecuador to the free trade agreement with the European Union. Falling oil prices and the appreciation of the dollar forced Correa to put aside his bias against trade agreements in order to avoid some $0.5b i...

Economy Still Slogging through Winter
CHILE · Report · 16 Nov 2016

Donald Trump's presidential victory will make an impact around the world, including in Chile. Some effects are already being felt: copper prices rose, evidently on expectations of a U.S. construction boom. Other effects are subtler. Trump's influence may extend to politics, as Chile historically ...

U.S. Elections and Venezuela
VENEZUELA · In Brief · 15 Nov 2016

Trade between Venezuela and the U.S. has evolved normally despite diplomatic ups and downs. U.S. companies operating in Venezuela haven’t faced problems. This is unlikely to change with President Trump. Both governments have also held relatively fluid conversations throughout the Venezuelan polit...

Peace All Over Again
COLOMBIA · Report · 15 Nov 2016 · 1 response

Against all odds, the Government presented a New Peace Agreement with FARC on Sunday the 13th of November. This agreement is an attempt to include the opposition’s comments to the agreement, after the plebiscite to legitimize such agreement was defeated on October 2nd. Such a defeat, while politi...

GDP in Q3 far weaker than the official forecast
HUNGARY · In Brief · 15 Nov 2016

This morning, the first estimate of GDP data for Q3 came out at +2% yoy on unadjusted basis and +0.2% qoq, +1.4% yoy on sdab basis. This is rather close to the Portfolio.hu analyst consensus of +2.1% yoy for the unadjusted data, but very far off the +3.6% yoy forecast given by the MNB in its Sept...

Who is afraid of Donald Trump? (2)
PHILIPPINES · In Brief · 15 Nov 2016

Summarized below is our assessment of risks for the Philippines under a Trump presidency. The most immediate impact will be on migration and remittances. Latest government data show that there are some 270,000 Filipinos working in the U.S. who are not properly documented (plus about 129,000 there...

Cautious Celebration
RUSSIA / FSU POLITICS · Report · 14 Nov 2016

Donald Trump’s victory is seen as a chance to improve relations Trump’s victory in the US Presidential election came as a somewhat pleasant surprise for the Kremlin, but there is no solidified position regarding what it might mean for Moscow. Shortly before the election, Russia’s leadership wa...

Week of November 14
BRAZIL POLITICS · Report · 14 Nov 2016

A short week due to the Tuesday holiday: On Monday, an interview with President Michel Temer will air on the Roda Viva program. The Senate floor begins the first of five sessions to discuss the Federal Spending Amendment. In the House, urgency for the bill on the securitization of government debt...

A Week After USA Election: Impact on the Peruvian Economy
PERU · In Brief · 14 Nov 2016

Clearly the main concern relates on the effect of possible implementation of policies on the global economy. A unilateral action on trade tariffs and non-tariff barriers could bring about unfathomable global repercussions. We reckon that the effects on trade with Peru would be very limited. Trade...