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.
After more than two decades of negotiations, the European Union and Mercosur, a bloc composed of Brazil, Argentina, Uruguay, Paraguay, and Bolivia, have finalized a free trade agreement that would encompass more than 700 million people and nearly 25% of global GDP. However, it still needs to be ratified.
In the political arena, one of the most prominent developments was the victory of Yamandú Orsi in the Uruguayan presidential elections, meaning the left will return to power after five years. Regarding the Ecuadorian electoral landscape, polls show President Daniel Noboa holding a slight lead over Luisa González, amidst an economic contraction due to the energy crisis, although the situation has improved in this regard.
Meanwhile, Peru continues to report strong macroeconomic figures, but the executive’s popularity has not improved, and Congress forced the dismissal of the Minister of Energy and Mines. Similarly, Argentina reported its best inflation figure since 2020, though in this case, Javier Milei is recovering the approval level he lost in recent months.
Donald Trump’s victory has supported Milei’s political strategy, but it is already generating tensions with Mexico due to tariff threats, a country that, for the second consecutive year, is the leading trade partner of the United States.
In the legislative sphere, Chile approved the 2025 Budget, which prioritizes social issues and includes a 2% increase in public spending. Meanwhile, the situation in Colombia is complex, with the approval of an administrative decentralization reform, the rejection of a tax reform, and lengthy debates on health and labor reforms.
Finally, Brazil’s President Lula da Silva was discharged from the hospital after an emergency brain surgery, and has resumed certain activities. The country has reduced the population living in poverty by almost nine million people and announced a more equitable tax system.