BBVA Research

The report analyzes the undervaluation issue of the RMB. Based on the MB and BEER models, it concludes that while there indeed exists periods of undervaluation, its degree of undervaluation is significantly lower than often claimed.

Global climate governance has moved from framework-building to delivery. Despite progress, implementation and ambition remain off track for Paris. COP31 should therefore be judged by whether commitments translate into measurable, financed, accountable and climate-consistent action.

Despite these gains, remittances declined by 6.5% in real terms in July, due to inflation and, primarily, the depreciation of the US dollar. Since reaching their peak in July 2022, remittances to Mexico have fallen by 24.8% in real terms, negatively affecting the income of recipient households over the past four years.

Inflation in Peru stood at 0.07% month-on-month in August, raising the year-on-year rate to 4.4%. This increase is due to the readjustment of electricity tariffs and the rise in fuel prices. Core inflation moderated to 4.5%, but remains above the target range. Inflation is expected to remain high in the coming months.

The Turkish economy grew by 2.3% y/y in 2Q26, below both our expectation (3%) and market consensus (2.9%), bringing growth in 1H26 to 2.5% y/y. Assuming a prudent policy mix going forward and no further escalation in geopolitical tensions, we maintain our 3.0% GDP growth forecast for 2026 with limited downside risks now.

Mexico's current account recorded a surplus of USD 8.9 billion in 2Q26, driven by a record high in the non-oil merchandise balance. In contrast, Net Foreign Direct Investment (FDI) showed an annual decrease of 11.7% during the first half of 2026.