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.
The relationships between the Legislative and Executive branches in Latin American countries determine the pace at which significant reforms can be implemented. While economic data over the past month has been relatively positive in the region, the effects of climate change remain a constant concern.
Ecuador is experiencing a severe drought that once again threatens the country’s energy security. Additionally, tensions between President Daniel Noboa and the Assembly hinder legislative progress. The situation is similar in Chile, where ongoing debates about pension system reform persist, and the Central Bank has cut interest rates to stimulate the economy. Peru’s monetary authority has also lowered the reference rate again, motivated by favorable inflation data.
However, this stability is not reflected in the political sphere, as President Boluarte has made 53 ministerial appointments during her tenure. The tension between branches of government has led to uneven progress on social policies particularly in Colombia, where labor reform is advancing
slowly, the health one has been postponed, and tax measures might be implemented by decree, according to the government. A significant constitutional reform was approved in Mexico, establishing the election of judges through popular vote, raising concerns about its potential impact on investments and sparking social protests.
There were also demonstrations in Argentina, against the presidential veto of a law from the Chamber of Deputies that would have increased pensions. Meanwhile, inflation remains around 4% for the third consecutive month. Brazil recorded deflation in August and saw unemployment fall to its lowest level since 2012, but the country experienced a record number of wildfires, which increased by 78% compared to the previous year.
In Europe, potential changes in economic and trade policies following the European Parliament elections could lead to increased protectionism from the Union, though much remains undecided. Additionally, agricultural protests and the stance of the new French Prime Minister, who prioritizes “mirror clauses,” are complicating the conclusion of an agreement with Mercosur.
