Economy

After years of unsustainable policies, the decision taken by the Argentine government on July 31 to raise electricity tariffs was certainly step in the right direction. However, we... 2008-08-14

As the general price level in Chile accelerates we are growing less confident that falling international energy prices will be enough to bring down inflation. High levels of money... 2008-08-06

The appreciatory pressure on the Paraguayan guarani appears to have abated for the time being, and our PYG4,000/US$ year-end forecast looks to be on target. Looking at the real effective... 2008-08-05

With the government now facing growing fiscal constrains due to the overturned grains export tax and high wholesale prices, the move to hike electricity tariffs by an average of 25%... 2008-08-05

The outlook for Chile's economy continues to deteriorate. With inflation still topping the government's political agenda, prospects for a fiscal stimulus package remain low. While... 2008-08-04

Chile's central government budget surplus during the second quarter of 2008 narrowed to 1.0% of GDP, from 3.0% in Q108. While government expenditure rose by just 5.5% quarter-on-quarter... 2008-08-04

While still in surplus, the Argentine trade account is exhibiting a worrying trend. June's US$308mn trade surplus was the lowest since 2001, and lends support to our view that the... 2008-07-30

The solid growth momentum of the Paraguayan economy should see real GDP expand by 4.2% this year, and 3.5% in 2009. While high on a historical basis, this will represent a cooling... 2008-07-29

Thanks to the rapid appreciation of the euro and the Brazilian real, the Argentine peso remains competitive, as measured using the real multilateral exchange rate. However, rising... 2008-07-15

We held a short-term constructive view on the Argentine peso at the onset of the financial turmoil, arguing that the Banco Central de la República Argentina would use its foreign... 2008-07-08