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Synthesis of the Brazilian Economy
BRAZIL ECONOMICS · Report · 14 Jun 2016

The first month of the interim government of Michel Temer was marked by important victories, the most evident being the assembly of the economic team. The quality of the new team is unquestionable and extremely welcome. It includes people like Henrique Meirelles as finance minister, Ilan Goldfajn...

Week of June 13
BRAZIL POLITICS · Report · 13 Jun 2016

Interim President Michel Temer personally delivers to Congress the proposal that sets limits to increases in public spending. The idea is that public spending increases cannot outpace inflation. Another important issue is the trial of Eduardo Cunha in the Ethics Council. In the Senate, the Impeac...

The First Steps of the Adjustment
BRAZIL ECONOMICS · Report · 13 Jun 2016

To achieve renewed growth while keeping inflation under control, Brazil needs various reforms, but by far the most important is in the fiscal area, to produce a return of primary surpluses large enough to lower the debt/GDP ratio. To start this adjustment, the government has chosen to avoid an im...

Business cycle conditions
INDIA · Report · 13 Jun 2016

The controversy about Indian GDP data has become acrimonious, as it has become linked up with the attempts of the administration to put its best foot forward at the Second Anniversary. The first data for the Jan-March 2016 quarter is now in hand. Conditions in the economy remain difficult. Despit...

The Recent Inflation Trend
BRAZIL ECONOMICS · Report · 13 Jun 2016

After a brief period of deceleration, the 12-month IPCA increased again in May. This does not represent a trend reversal, indicative of renewed inflationary pressures. The tendency is for inflation to continue waning. Nevertheless, the probability is very high that the 12-month IPCA will close th...

Week of June 12
TURKEY · Report · 12 Jun 2016

AKP will wait for the leadership struggle in MHP to be sorted out before submitting its proposal for an Executive Presidency to the parliament, which means a tranquil month in politics. Of course, more terror attacks might be just around the corner. In Syria, conditions are worsening on Turkey...

S&P says it will not upgrade Hungary to investment risk this year
HUNGARY · In Brief · 12 Jun 2016 · 1 response

S&P's Moritz Kraemer said to Reuters in recent days the agency is unlikely to raise Hungary to investment risk from its current BB+/Stable sovereign LT FX rating on September 18, which will be its next revision date for the country and also the last one this year. The main factors behind this are...

Keiko Fujimori Concedes Defeat
PERU · In Brief · 10 Jun 2016

During a short public presentation, and accompanied by her huge 73 strong force elected to the new Congress, Fujimori recognised Pedro Pablo Kuczynski's triumph. In her speech, she sated that their stance will be that of a strong and watchful opposition. She announced her intention of submitting ...

Growth Up, CAD Down, Story Steady
TURKEY · Report · 10 Jun 2016

Today’s data releases were positive at the headline level, with a higher than expected growth in Q1 coupling with a lower than expected current account deficit (CAD) in April, but we do not see any reason to change our forecasts -- of slower growth and a widening CAD later in the year -- for now.

When a surprise is no surprise: Bachelet’s mini cabinet-shuffle
CHILE · In Brief · 09 Jun 2016

Michelle Bachelet replaced her Interior Minister on Wednesday. Traditionally, the Interior Minister is considered the cabinet’s first among equals, and indeed becomes acting president – referred to as vice-president – when the president is travelling (the rest of the time Chile has no such positi...

May inflation released: sag is increasingly evident
CHILE · In Brief · 09 Jun 2016

Inflation data for the month of May were released Wednesday. The monthly change was 0.2%, above the 0.3% expected by market analysts. The surprise was greater for the CPI excluding food and energy (IPCSAE): -0.1% versus an expected 0.2%. The 12-month variation of CPI was 4.2%, the same as last mo...

Economics: Troubling Balance of Payments Data
MEXICO · Report · 09 Jun 2016

Aspects of the report on the balance of payments for the first quarter of 2016 may eventually become points of concern regarding Mexico’s external exposure such as the slowing pace of exports, the direction of foreign investment flows, the extent of financial capital outflows from both Mexican re...

CNT/MDA Poll: Negative evaluations of the government decrease
BRAZIL POLITICS · Report · 08 Jun 2016

The CNT/MDA poll released today, the first of the Michel Temer administration, shows that the interim president was able to reduce pessimism regarding the government. Compared to the Dilma administration, negative evaluations (“bad/very bad”) of the Temer government decreased 31.9 points (see tab...

Politics: Elections 2016 - a new political balance
MEXICO · Report · 08 Jun 2016

Election Day, last Sunday, June 5, brought about electoral results that modify Mexico's political landscape, as well as the political strength each political party has facing the presidential elections of 2018. Voters chose a different party to inhabit eight out of the 12 governor's mansions at s...

GDP Contracts in the First Quarter of 2016
SOUTH AFRICA · Report · 08 Jun 2016

The South African economy began the year on a negative note as the quarter-on-quarter (q/q) and seasonally annualized GDP contracted by 1.2% during the first quarter of 2016, as reported by Statistics South Africa. This followed downwardly adjusted growth of only 0.4% during the last quarter of 2...