Latin American Economy & Business

Economy & Business - September 2023

After various delays, on 10 August Guyana’s national assembly finally voted in favour of a new Petroleum Activities bill, replacing the Petroleum Act of 1986.

Economy & Business - August 2023

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LEADER
- Chinese firms begin extraction of Bolivian lithium
ANDEAN COUNTRIES
- VENEZUELA: The end of free diesel
- COLOMBIA: A self-inflicted aviation crisis?
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- BRAZIL: Lula’s two-pronged economic strategy
- BRAZIL: Decades-long tax reform in sight
- ARGENTINA: Massa bets on gas, IMF for election boost
- REGION: Mercosur-EU deal hangs in the balance
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- CENTRAL AMERICA: Costa Rica tops table for foreign direct investment
- GUATEMALA: Energy emergency reveals systemic vulnerabilities
- CARIBBEAN: Can PetroCaribe come back from the dead?
- DOMINICA: The cost of citizenship?
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Gov’t completes purchase of former flag carrier airline
- MEXICO: Trade tensions likely to grow despite positive USMCA meeting
- MEXICO: Increased risk of corruption in the health sector
- MEXICO: Pemex accidents further strain financial situation
- ECONOMIC HIGHLIGHTS

On 12 July, the CBC consortium of Chinese firms comprising CATL (the world’s largest manufacturer of lithium-ion batteries for electric vehicles), BRUNP, and CMOC announced that it had begun extraction of lithium in Bolivia, six months after signing an agreement worth US$1bn with state-run company Yacimientos de Litio Bolivianos (YLB) to install two direct lithium extraction (DLE) plants.

Economy & Business - July 2023

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LEADER
- Challenges ahead for Mexico’s new labour minister
ANDEAN COUNTRIES
- ECUADOR: Pendulum swing likely in snap elections
- VENEZUELA: More allies to help counter impact of sanctions
- COLOMBIA: The pros and cons of a stalled agenda
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- CHILE: Boric’s all-or-nothing tax reform
- URUGUAY: Big hydrogen project for small country
- BRAZIL: Lula cracks down on illegal gold rush
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- HONDURAS: Rolling blackouts announced as energy shortages bite
- EL SALVADOR: Government pushes forward with bitcoin mining plans
- HAITI: IMF issues strangely upbeat report
- THE BAHAMAS: PM claims finances improving
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Gov’t pushes for investment in Isthmus of Tehuantepec
- MEXICO: CFE struggles to meet growing power demand
- MEXICO: Teachers’ strike underlines failings of approach to education
- ECONOMIC HIGHLIGHTS

A serious reshuffle has been taking place within President Andrés Manuel López Obrador’s cabinet, as several senior figures have resigned in order to compete to become the 2024 presidential candidate for the ruling left-wing Movimiento Regeneración Nacional (Morena).

Economy & Business - June 2023

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LEADER
- A new pricing policy at Brazil’s Petrobras
ANDEAN COUNTRIES
- COLOMBIA: Crumbling alliance and political scandal threaten reform agenda
- BOLIVIA: Gold reserves for sale as gov’t battles currency pressures
- PERU: Protecting small-scale fishing
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- ARGENTINA: Massa has economy in intensive care
- ARGENTINA: Milei formalises plans for ultra-liberal shock
- URUGUAY: Pension reform helps credit rating upgrade
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- COSTA RICA: Chaves claims progress after first year in office
- PANAMA: New restrictions on ships passing Canal as drought sees water levels plunge
- GUYANA: Liza-1 faces key insurance dispute
- BARBADOS/REGION: Mottley steps up debt relief campaign
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Banxico remains cautious on interest rates
- MEXICO: Citigroup changes tack on Banamex
- MEXICO: Aviation sector faces continued uncertainty
- ECONOMIC HIGHLIGHTS

In 2015 Brazil’s state-owned oil company Petrobras booked its largest loss ever under the leftist president Dilma Rousseff (2011-2016).

Economy & Business - May 2023

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LEADER
- Nicaragua’s strengthening ties with Moscow and Beijing
ANDEAN COUNTRIES
- VENEZUELA: Turning to old friends for cooperation on oil and gas
- ECUADOR: Petroecuador appoints new CEO, hopes for stability
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- PARAGUAY: Continuity doesn’t mean stability
- BRAZIL: A new cap on more government spending
- CHILE: Boric proposes statist lithium industry
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- REGION: Studies call for increased investment in health sector
- SURINAME: Debt restructuring deal struck
- CARIBBEAN: India offers support to SMEs
- DOMINICAN REPUBLIC: Ahead of the pack
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Mining reforms to curb exploration and investment
- MEXICO: New science law unlikely to solve brain drain
- MEXICO: Challenges as rural financial agency disappeared
- MEXICO: Record exports suggest nearshoring progress
- ECONOMIC HIGHLIGHTS

Nicaragua has been bolstering relations with Russia and China as the US has imposed multiple rounds of sanctions, citing ongoing human rights abuses taking place under the government led by President Daniel Ortega.

Economy & Business - April 2023

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LEADER
- Panic over dollar shortages in Boliva
ANDEAN COUNTRIES
- COLOMBIA: Petro’s reforms unveil coalition cracks
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- BRAZIL: Lojas Americanas – downfall of a retail empire?
- BRAZIL: Lula’s beef with the central bank
- CHILE: Aftermath of a failed tax reform
- ARGENTINA: Massa’s battle to avoid default and devaluation
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- HONDURAS: Castro government establishes ties with China at the expense of Taiwan
- GUATEMALA: IMF praises economic “resilience”
- CARIBBEAN: Tourism recovery is gathering pace
- BELIZE: Shrinking the debt
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Focus on energy sovereignty unlikely to solve Pemex’s problems
- MEXICO: Tren Maya on track despite mounting challenges
- MEXICO: Bullish about tourism
- MEXICO: Dispute with Vulcan Materials sours US trade relations
- MEXICO: Trouble for local broadcaster TV Azteca
- ECONOMIC HIGHLIGHTS

Queues have been forming for weeks outside Bolivia’s central bank in downtown La Paz, as the supply of US dollars available at commercial banks and traders has dried up.

Economy & Business - March 2023

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LEADER
- Renewed concerns over nationalisation of Mexico’s lithium reserves
ANDEAN COUNTRIES
- COLOMBIA: Petro unveils sweeping national development plan
- PERU: Protests dampen economic outlook
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- BRAZIL: Economic policies cause a stir
- PARAGUAY/BRAZIL: Paraguay wants better Itaipú terms from Lula, again
- URUGUAY: Tax breaks amid drought-induced economic slowdown
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- EL SALVADOR: Ratings agencies sound note of cautious optimism, but poverty rate rises
- CENTRAL AMERICA: US announces US$950m in private sector investment
- CUBA: What chances of debt renegotiation?
- JAMAICA: Is this a Caribbean success story?
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Local airlines face tough times
- MEXICO: Much to be done to improve public spending accountability
- MEXICO: Women’s labour participation remains poor
- ECONOMIC HIGHLIGHTS

Mexico’s President Andrés Manuel López Obrador published two decrees in the official gazette (DOF) on 18 February.

Economy & Business - February 2023

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LEADER
- Economic woes follow Argentina’s World Cup bliss
ANDEAN COUNTRIES
- BOLIVIA: Camacho’s arrest inflames regional divide
- COLOMBIA: Petro to take over utility regulators
- VENEZUELA: Back to hyperinflation?
- VENEZUELA: The gradual return of tourists
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- BRAZIL-REGION: Lula backs integration talk with money
- CHILE: Boric says no to Dominga mine
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- PANAMA: Vital mining sector remains in limbo
- HONDURAS: Controversial new budget will be largest in Central America
- THE BAHAMAS: Economics of a crypto blowout
- TRINIDAD & TOBAGO: Venezuela deal has regional potential
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Peso’s strong performance expected to continue
- MEXICO: Strict anti-tobacco laws to impact business
- MEXICO: Taxi trouble in Quintana Roo
- MEXICO: Planned cargo flight change to go ahead despite concerns
- ECONOMIC HIGHLIGHTS

For most Argentines the euphoria of winning the football World Cup title for the third time last year quickly gave way to renewed economic malaise.

Economy & Business - January 2023

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LEADER
- Cuba faces little chance of strong recovery in 2023
ANDEAN COUNTRIES
- VENEZUELA: Easing of sanctions may signal end to pariah status
- COLOMBIA: Gas output to rise in long transition to green energy
- REGION: Waking up to green hydrogen
- ECONOMIC HIGHLIGHTS
BRAZIL & SOUTHERN CONE
- BRAZIL: Lula’s economic challenges
- REGION: Uruguay tells Mercosur to grow or die
- ARGENTINA: The white gold rush in the Andes
- ECONOMIC HIGHLIGHTS
CENTRAL AMERICA & CARIBBEAN
- CENTRAL AMERICA: Vital coffee industry facing serious challenges, says new report
- CENTRAL AMERICA: Costa Rica maintains position as largest receiver of FDI
- COSTA RICA: Fiscal deficit progress as first external bond issuance since 2019 approved
- ECONOMIC HIGHLIGHTS
MEXICO & USMCA
- MEXICO: Social progress stagnates
- MEXICO: Much-needed minimum wage rise takes effect
- MEXICO: Paid holiday increased for workers
- MEXICO: Tensions over plan to ban imports of GM corn
- ECONOMIC HIGHLIGHTS

While 2022 was a tough year for all Latin America and the Caribbean, Cuba suffered more than most – and it looks set to continue lagging in 2023 as some of its regional neighbours push forward on the recovery path.