This drop in unemployment reflects the strengthening of Brazil’s labor market, with Bank of America deciding to boost its forecast for the country’s economic growth this year and the next due to such developments.

The good news of the day comes from the job market,” Inter’s chief economist Rafaela Vitoria said. “Real wages remained stable at the margin, which is also good news for the central bank. It should continue to lower the key Selic rate at the 50-basis-point pace in its next meetings.”

Brazil’s strong unemployment numbers come despite Brazil’s high interest rates, with the central bank choosing to implement a larger-than-expected 50 basis point hike.

The post Brazil’s Jobless Rate Hits Nine-Year Low appeared first on theprimarymarket.com.

Brazil’s real edged 0.2% against the U.S. dollar, while Chile’s peso declined 1.3% against the greenback, thereby backtracking from its first weekly gain in the last eight. Mexico’s peso is 0.2% lower ahead of its second-quarter GDP reading on Tuesday, while Peru’s sol fell by 0.2%.

Argentina’s peso rose to 728 per dollar after the South American nation received a new policy package from the International Monetary Fund. The new IMF package included payments of some $8 billion in August and December. Still, this cash influx would leave Argentina $7 billion short of its previous end-of-year 2023 target.

The post Latin American Currencies Slip Following Chinese Economic Boost appeared first on theprimarymarket.com.

Among the highest price hikes in the South American nation last month were in the services sector, which rose by 10.5%. This was followed by the communications sector, with an 8.1% increase. Annual inflation, according to Reuters calculations based on official figures, slowed from 404.3% in June to 398.1%. This keeps Venezuela’s inflation as the continent’s highest.

With the bolivar continuing to depreciate against the U.S. dollar adding to economic pressure, Venezuela’s government has struggled to reverse the upward trajectory of inflation in the South American nation. Among the actions that the Maduro administration has taken to curb inflation are cuts in public spending, credit restrictions, and the injection of foreign currencies into the local market in an attempt to stabilize the local currency. The bolivar recently traded at 30 for one U.S. dollar.

The post Venezuelan Inflation Holds Steady at 6.2% appeared first on theprimarymarket.com.

Ford revealed that it would be compensated with “an amount compatible with the market” as a result of the agreement. The company did not disclose the exact amount.

Chinese electric vehicle manufacturer BYD has exhibited an interest in the complex since mid-2022. The company has repeatedly attempted to engage with Ford and the government of Bahia to negotiate the acquisition of the complex.

BYD revealed its continued interest in the complex in a statement explaining that the company “continues with the planning to invest in the Camacari industrial park, maintaining the necessary negotiations with the Bahia government.”

The post Ford Secures Ownership Of Previously-Shut Brazilian Factory Complex appeared first on theprimarymarket.com.

Annual inflation in the South American nation slowed to 7.6% in June, beating market expectations. This is lower than May’s figure of 8.7% as well as the 14% peak in August 2022.

From July 2021 to October 2022, Chile’s central bank hiked interest rates by a combined 1,075 points in an effort to combat surging inflation. The central bank was able to hold its interest rates at a high of 11.25% until its latest decision to lower rates back down.

Scotiabank Chile’s chief economist Jorge Selaive referred to the rate cut as “aggressive”, commenting, “There’s little doubt, in light of the data and this decision, that the (central bank) is trying to get ahead of the curve.” He added that he expects the bank’s interest rate to be 7.5% or lower in December this year.

The post Chile Central Bank Cuts Rates By 100 Basis Points as Inflation Cools appeared first on theprimarymarket.com.

94.52 trillion pesos have been allocated to debt servicing, with a further 97.75 trillion pesos for new investments. The government allocated 70.5 trillion pesos for education, health, drinking water, and other general purposes, while 57.4 trillion pesos have been planned to support the state pension system.

President Gustavo Petro, Colombia’s first leftist president, has pledged to introduce a slew of social and economic reforms across several sectors including healthcare and labor. While his proposed labor reform bill was rejected by Congress, the government plans to reintroduce it.

The Autonomous Fiscal Rule Committee (CARF) has warned that such reforms could result in higher costs while risking noncompliance with the fiscal rule.

The post Colombia Presents 2024 Budget Proposal appeared first on theprimarymarket.com.

The IMF confirmed in a statement on Friday that its executive board approved the payment of $7.5 billion to Argentina in August, adding that this agreement was reached with outgoing President Alberto Fernandez.

Despite the welcome influx of new funding, this money will not be able in time to help Argentina before its key primary election on August 13 or assist the country in paying off the $2.6 billion that the country owes to the IMF for an existing loan.

In order to make the payment, Argentina will tap into other sources of financing, including a $1 billion bridge loan from the Caracas-based CAF development bank.

“It’s very good news,” Economy Minister Sergio Massa said of Argentina’s deal with the IMF. “This lets us get through this second half of the year that is obviously marked by the election, which sometimes creates uncertainty or doubts, with a lot more calm.”

Massa has been actively involved in negotiations with the IMF and is also running for president in the upcoming elections.

The post IMF to Loan Argentina Up to $10.8 Billion for Rest of 2023 appeared first on theprimarymarket.com.

The real advanced by 1.1%, thereby driving a 0.6% jump for the MSCI index for Latam currencies. This rise comes as the tax reform bill is set to be introduced to the Senate for further voting.

“The approval of a long-awaited tax reform bill by Brazil’s lower house of congress suggests that hopes for growth-friendly reforms during Lula’s term aren’t dead,” Kimberley Sperrfechter, emerging markets economist at Capital Economics, observed.

Part of President Luiz Inacio Lula da Silva’s plan to boost Brazil’s economic growth, the reforms are aimed at simplifying the nation’s complex consumption tax laws.

Despite its recent uptick, the real is still headed for a weekly loss of 1.6%; its largest downfall in the last 11 weeks.

The post Brazil’s Real Rises Following Tax Reform appeared first on theprimarymarket.com.

Chile’s economic growth fell marginally short of estimates, with a consensus of economists polled by Reuters forecasting a 1% growth for the South American nation from January to March.

Despite achieving a second positive quarter-on-quarter growth in a row, Chile’s economy shrunk 0.6% on a yearly basis compared to the first quarter of 2022.

The world’s largest copper producer, Chile faced a decline in its copper industry last year during the recovery from the Covid-19 pandemic. The slowdown followed an aggressive rise in inflation, with in turn prompted the nation’s central bank to enforce a strict monetary policy.

Optimistic forecasts by the central bank see the Chilean economy growing by 1% to 2% over the course of 2023, while the most bleak outlook would be a 0.5% contraction.

The post Chile’s Economy Grows 0.8% in First Quarter appeared first on theprimarymarket.com.

Located in western Argentina, the massive Vaca Muerta shale formation is viewed as key to boosting local natural gas production, thereby reducing Argentina’s reliance on pricey imports.

The winning bidder will work to convert the pipelines so that they transport natural gas in the opposite direction. This means that instead of being used to import natural gas from abroad, the pipeline will be used to supply Vaca Muerta natural gas to the rest of the country as well as export the gas to northern Chile, central Brazil, and Bolivia.

“This will make it possible to begin thinking of Argentina as an energy exporter,” Massa stated. Currently, Vaca Muerta holds the second-largest shale gas reserves.

The post Argentina Seeking New Pipeline Work From Vaca Muerta to Boost Local Supply appeared first on theprimarymarket.com.

This drop in unemployment reflects the strengthening of Brazil’s labor market, with Bank of America deciding to boost its forecast for the country’s economic growth this year and the next due to such developments.

The good news of the day comes from the job market,” Inter’s chief economist Rafaela Vitoria said. “Real wages remained stable at the margin, which is also good news for the central bank. It should continue to lower the key Selic rate at the 50-basis-point pace in its next meetings.”

Brazil’s strong unemployment numbers come despite Brazil’s high interest rates, with the central bank choosing to implement a larger-than-expected 50 basis point hike.

The post Brazil’s Jobless Rate Hits Nine-Year Low appeared first on theprimarymarket.com.

Brazil’s real edged 0.2% against the U.S. dollar, while Chile’s peso declined 1.3% against the greenback, thereby backtracking from its first weekly gain in the last eight. Mexico’s peso is 0.2% lower ahead of its second-quarter GDP reading on Tuesday, while Peru’s sol fell by 0.2%.

Argentina’s peso rose to 728 per dollar after the South American nation received a new policy package from the International Monetary Fund. The new IMF package included payments of some $8 billion in August and December. Still, this cash influx would leave Argentina $7 billion short of its previous end-of-year 2023 target.

The post Latin American Currencies Slip Following Chinese Economic Boost appeared first on theprimarymarket.com.

Among the highest price hikes in the South American nation last month were in the services sector, which rose by 10.5%. This was followed by the communications sector, with an 8.1% increase. Annual inflation, according to Reuters calculations based on official figures, slowed from 404.3% in June to 398.1%. This keeps Venezuela’s inflation as the continent’s highest.

With the bolivar continuing to depreciate against the U.S. dollar adding to economic pressure, Venezuela’s government has struggled to reverse the upward trajectory of inflation in the South American nation. Among the actions that the Maduro administration has taken to curb inflation are cuts in public spending, credit restrictions, and the injection of foreign currencies into the local market in an attempt to stabilize the local currency. The bolivar recently traded at 30 for one U.S. dollar.

The post Venezuelan Inflation Holds Steady at 6.2% appeared first on theprimarymarket.com.

Ford revealed that it would be compensated with “an amount compatible with the market” as a result of the agreement. The company did not disclose the exact amount.

Chinese electric vehicle manufacturer BYD has exhibited an interest in the complex since mid-2022. The company has repeatedly attempted to engage with Ford and the government of Bahia to negotiate the acquisition of the complex.

BYD revealed its continued interest in the complex in a statement explaining that the company “continues with the planning to invest in the Camacari industrial park, maintaining the necessary negotiations with the Bahia government.”

The post Ford Secures Ownership Of Previously-Shut Brazilian Factory Complex appeared first on theprimarymarket.com.

Annual inflation in the South American nation slowed to 7.6% in June, beating market expectations. This is lower than May’s figure of 8.7% as well as the 14% peak in August 2022.

From July 2021 to October 2022, Chile’s central bank hiked interest rates by a combined 1,075 points in an effort to combat surging inflation. The central bank was able to hold its interest rates at a high of 11.25% until its latest decision to lower rates back down.

Scotiabank Chile’s chief economist Jorge Selaive referred to the rate cut as “aggressive”, commenting, “There’s little doubt, in light of the data and this decision, that the (central bank) is trying to get ahead of the curve.” He added that he expects the bank’s interest rate to be 7.5% or lower in December this year.

The post Chile Central Bank Cuts Rates By 100 Basis Points as Inflation Cools appeared first on theprimarymarket.com.

94.52 trillion pesos have been allocated to debt servicing, with a further 97.75 trillion pesos for new investments. The government allocated 70.5 trillion pesos for education, health, drinking water, and other general purposes, while 57.4 trillion pesos have been planned to support the state pension system.

President Gustavo Petro, Colombia’s first leftist president, has pledged to introduce a slew of social and economic reforms across several sectors including healthcare and labor. While his proposed labor reform bill was rejected by Congress, the government plans to reintroduce it.

The Autonomous Fiscal Rule Committee (CARF) has warned that such reforms could result in higher costs while risking noncompliance with the fiscal rule.

The post Colombia Presents 2024 Budget Proposal appeared first on theprimarymarket.com.

The IMF confirmed in a statement on Friday that its executive board approved the payment of $7.5 billion to Argentina in August, adding that this agreement was reached with outgoing President Alberto Fernandez.

Despite the welcome influx of new funding, this money will not be able in time to help Argentina before its key primary election on August 13 or assist the country in paying off the $2.6 billion that the country owes to the IMF for an existing loan.

In order to make the payment, Argentina will tap into other sources of financing, including a $1 billion bridge loan from the Caracas-based CAF development bank.

“It’s very good news,” Economy Minister Sergio Massa said of Argentina’s deal with the IMF. “This lets us get through this second half of the year that is obviously marked by the election, which sometimes creates uncertainty or doubts, with a lot more calm.”

Massa has been actively involved in negotiations with the IMF and is also running for president in the upcoming elections.

The post IMF to Loan Argentina Up to $10.8 Billion for Rest of 2023 appeared first on theprimarymarket.com.

The real advanced by 1.1%, thereby driving a 0.6% jump for the MSCI index for Latam currencies. This rise comes as the tax reform bill is set to be introduced to the Senate for further voting.

“The approval of a long-awaited tax reform bill by Brazil’s lower house of congress suggests that hopes for growth-friendly reforms during Lula’s term aren’t dead,” Kimberley Sperrfechter, emerging markets economist at Capital Economics, observed.

Part of President Luiz Inacio Lula da Silva’s plan to boost Brazil’s economic growth, the reforms are aimed at simplifying the nation’s complex consumption tax laws.

Despite its recent uptick, the real is still headed for a weekly loss of 1.6%; its largest downfall in the last 11 weeks.

The post Brazil’s Real Rises Following Tax Reform appeared first on theprimarymarket.com.

Chile’s economic growth fell marginally short of estimates, with a consensus of economists polled by Reuters forecasting a 1% growth for the South American nation from January to March.

Despite achieving a second positive quarter-on-quarter growth in a row, Chile’s economy shrunk 0.6% on a yearly basis compared to the first quarter of 2022.

The world’s largest copper producer, Chile faced a decline in its copper industry last year during the recovery from the Covid-19 pandemic. The slowdown followed an aggressive rise in inflation, with in turn prompted the nation’s central bank to enforce a strict monetary policy.

Optimistic forecasts by the central bank see the Chilean economy growing by 1% to 2% over the course of 2023, while the most bleak outlook would be a 0.5% contraction.

The post Chile’s Economy Grows 0.8% in First Quarter appeared first on theprimarymarket.com.

Located in western Argentina, the massive Vaca Muerta shale formation is viewed as key to boosting local natural gas production, thereby reducing Argentina’s reliance on pricey imports.

The winning bidder will work to convert the pipelines so that they transport natural gas in the opposite direction. This means that instead of being used to import natural gas from abroad, the pipeline will be used to supply Vaca Muerta natural gas to the rest of the country as well as export the gas to northern Chile, central Brazil, and Bolivia.

“This will make it possible to begin thinking of Argentina as an energy exporter,” Massa stated. Currently, Vaca Muerta holds the second-largest shale gas reserves.

The post Argentina Seeking New Pipeline Work From Vaca Muerta to Boost Local Supply appeared first on theprimarymarket.com.