3 main challenges Latin America is facing this year
Following are heavy challenges currently facing Latin American countries.
1. Brazil's political and economic crisis
Brazil's progressive center-left government of Dilma Rousseff has come to an awful end. On May 12, Brazil's senate voted 55 to 22 to suspend President Dilma Rousseff, and began the formal impeachment trial against her. Earlier, on April 17, the lower house voted 367 to 137 in favor of her impeachment.
Also, Brazil, the region’s biggest economy, started 2016 with the formal loss of its investment grade rating. Its major challenge is to regain confidence and produce policies which will allow it to recover growth and stabilize its fiscal position.
2. Mexico and Chile looking for reforms
Mexico and Chile face the challenge of pushing forward with the reforms proposed by their respective governments, which include energy, in the case of Enrique Peña Nieto; and tax, education, labor and constitutional reforms in that of Michelle Bachelet. These two countries are also charged with trying to balance their nations’ books within the complicated outlook presented by 2016, due to the drop in raw material prices, in particular oil in Mexico and copper in Chile.
3. El Niño in Colombia and Peru
Colombia and Peru are facing the common challenge of mitigating the impact of the weather phenomenon 'El Niño', which will directly impact food prices, with a consequent increase in inflation. They also face momentous political tests, such as the signing of the peace agreement in Colombia between the government of Juan Manuel Santos and the guerrilla group FARC (Revolutionary Armed Forces of Colombia) and its subsequent implementation; and the imminent change of government in Peru in July, after this April’s presidential and parliamentary elections.