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Argentina’s economy kept recovering in Q2 2025, driven by fiscal order, a re-monetization strategy, and a flexible exchange rate scheme. The outlook is still shaped by the electoral context and the challenge of ensuring lasting stability in a volatile global environment.

Despite trade tensions, Peru’s economy is expected to grow by 3,1% this year, supported by record-high terms of trade, improved business confidence, and the construction of new copper mines. Output growth is expected to slow somewhat in 2026, to around 2,7%, mainly due to increased electoral uncertainty.

Growth will be around 3% for the third consecutive year in 2024, but a slowdown ahead is likely, driven by a less supportive global environment and higher-than-anticipated SELIC rates. The balance of risks has recently worsened, reflecting global factors and rising concerns over fiscal imbalances.

Remittances show high volatility in the first 9 months of 2024: 5 months with growth and 4 months with falls. Possibly, the tense electoral environment in the US has an impact on the flow of new migrants and the migrant population residing in that country.

Large fluctuations in the USD/MXN exchange rate impact Mexican migrants' decisions on the amount to remit. In August, the peso depreciated 5.4%, which boosted a 9.3% growth in remittances to Mexico in dollars and an increase converted into pesos of 17.0% in real terms.

The government maintains a firm commitment to fiscal balance while upholding a "zero monetary issuance" policy for all items arising from the public sector. The slowdown in inflation has stalled since May, remaining around 4% monthly, and economic activity shows signs that the recession may have ended in Q2 2024.

Remittances have been volatile over the past five months. Increases have been reported in two of them (April and June, even months) and declines in three months (March, May and July, odd months). In August, the peso depreciated 5.4%, so the next remittance report is expected to show growth.

The depreciation of the Mexican peso (MXN) against the dollar (USD) of 7.6% in June may partly explain this observed increase in remittances. Mexicans abroad take advantage of this temporary rise to send more dollars, which translates into more pesos for their relatives.