Latin American Keys is an informative and analytical summary regarding the political and economic situation in the Latin American region. These key takeaways, prepared monthly by ATREVIA´s Analysis and Research team, serve to be a useful tool in understanding the evolution of the political-institutional state of Latin America, a need that the pandemic has further exaggerated.
Many Latin American countries have experienced, to varying degrees, three common situations over the past month: moderate economic growth, a decrease in inflation that, while still above the targets set by central banks, has allowed several of these institutions to lower interest rates, and significant damages due to climatic phenomena.
Meanwhile, it seems that certain political dynamics remain ongoing. In Peru, changes within the Council of Ministers have resumed, with six changes on this occasion. Colombian President Gustavo Petro continues to struggle to garner the necessary support in the legislature to advance his social reforms. A similar situation is faced by his Chilean counterpart, Gabriel Boric, with a fiscal pact that
fails to find consensus.
On the other hand, Mexico decriminalized abortion at the federal level, and the two major political parties nominated their candidates for the 2024 presidential elections. In Argentina, contenders for the October 22 elections were also chosen, and the peso experienced a sharp depreciation. This devaluation affects the border region of neighboring Uruguay due to the competition it generates, but at least the country has overcome the water crisis it was facing.
This issue persists in Bolivia, with a prolonged drought that has raised concerns, adding to the violence related to drug trafficking. Security issues also continue to generate alarm in Ecuador and will be a key matter in the presidential runoff elections where the correísmo movement lags behind in the polls. As a counterpoint, Brazilian politics are focused on the international arena. President Lula da Silva toured Africa, promoted the expansion of the BRICS, and participated in the latest G20 summit. However, he also introduced significant domestic measures, such as raising the minimum wage and proposing a bill that modifies offshore taxation.
