Latin American Financial Outlook: A Week of Key Indicators

The Latin American economy faces a crucial week. Economic activity reports from Mexico, Argentina, and Colombia will shape the regional outlook. Brazil’s mid-January inflation data will set the stage for its central bank’s policy meeting. These indicators will provide insight into the region’s economic health and future prospects.

Argentina’s economy shows signs of improvement. November’s economic activity figures, due on January 23, are expected to advance. This growth stems from recovering real labor income and rising market confidence in economic prospects. Previous data revealed a 0.4% increase in manufacturing output and a 2.2% jump in construction activity.

Brazil’s consumer price inflation for January, to be released on January 24, is likely to slow down. However, experts warn this relief may be temporary. Core inflation indicators are expected to decelerate, with diffusion likely near 60%, down from 69% in December. The average core inflation is projected to be around 0.4% month-over-month.

Latin American Economic Outlook: A Week of Key Indicators. (Photo Internet reproduction)

Latin American Economic Outlook: A Week of Key Indicators

Colombia’s trade balance data for November, due on January 21, is expected to show a deficit of $1.32 billion. This figure compares to a $1.05 billion deficit in October and a $719 million gap a year earlier. The economic activity index for November, also to be released on January 21, is forecast to increase by 1.5% year-on-year.

Mexico’s retail sales figures for November will be unveiled on January 21. Analysts predict a 1.6% year-on-year decline due to base effects. This forecast implies a monthly rebound following October’s 0.3% drop. The country’s biweekly consumer price inflation data, set for release on January 23, is expected to fall to 3.8% year-on-year.

These economic indicators will provide valuable insights into Latin America’s economic trajectory. They will help businesses and policymakers make informed decisions in an ever-changing economic landscape. The region’s economic future hangs in the balance as these key figures come to light.

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