LatAm Weekly Roundup — May 30, 2025
This week, in Colombia, the labor reform was resumed in the Senate with a change of committee and resulted in the approval of a more moderate proposal, rejecting the government's original version. In Costa Rica, President Rodrigo Chaves dismissed the entire board of the National Bank after irregularities were found in the appointment of the general manager. In Peru, the resignation of the Vice Minister of Economy highlighted ongoing instability following ministerial changes triggered by political controversies. In Bolivia, facing fuel shortages and rising inflation, the government launched a package of economic and border control measures amid growing protests. In Brazil, the government partially rolled back the IOF tax increase after pressure from Congress and the market. In Argentina, a new plan was launched to regularize undeclared savings, potentially injecting up to USD 400 billion into the economy, as part of President Milei's broader anti-inflation strategy. In Mexico, the Central Bank drastically lowered its GDP growth forecast to near zero, warning of a weakened economic outlook and recommending fiscal caution.
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