What’s new in Latin America? October recap

Argentina: politics and economics

In October 2024, the Inter-American Development Bank (IDB) announced a disbursement of approximately $500 million to fund sustainable development projects in Argentina. This financing will prioritize essential areas like infrastructure, renewable energy, and social inclusion programs.

IDB President Ilan Goldfajn highlighted that this funding aims to enhance Argentina’s economic resilience and improve citizens’ quality of life. He stressed the importance of fostering sustainable investments that drive long-term growth.

Minister of Economy Luis Caputo welcomed the announcement, noting that this financial support is essential for tackling current economic challenges and fostering balanced development. Caputo emphasized that these resources will support strategic projects that generate employment and attract further investment in the country.

This disbursement marks a significant step in strengthening Argentina’s collaboration with the IDB, particularly in a context where external investment is crucial for economic recovery.

Brazil: blackout

On October 11, 2024, Greater São Paulo experienced a major blackout. Power outages affected several areas as a result of a severe storm, cutting electricity for over 2 million customers and causing disruptions to water supply and airport closures.

For 750,000 people, particularly in Cotia, São Bernardo do Campo, and Taboão da Serra, the blackout lasted for days.

Enel, the company responsible for electricity supply, has been under criticism for some time, as a similar incident occurred in São Paulo in November 2023.

Colombia: COP16

The 16th Conference of the Parties to the United Nations Convention on Biological Diversity took place in Cali, Colombia, from October 21 to November 1, 2024. This summit brought together nearly 200 countries to discuss biodiversity conservation strategies and address the alarming rate of environmental degradation.

Key topics at the conference included:

• Global cooperation to protect ecosystems and strengthen international environmental policies.
• The Kunming-Montreal Biodiversity Framework, aiming to halt and reverse biodiversity loss by 2030.
• Emphasis on including indigenous and traditional communities, with discussions on integrating traditional knowledge into national conservation strategies.
• A commitment from wealthier nations to provide at least $20 billion annually, starting in 2025, to support developing countries in achieving their biodiversity goals.

Colombian Economic Projections for 2024

The Economic and Social Research Center (Fedesarrollo) published the results of its latest Financial Opinion Survey at the end of October, capturing analysts’ forecasts on Colombia’s macroeconomic outlook. Experts project that the Colombian economy will close 2024 with a growth rate of 1.8%, with some optimistic estimates reaching up to 2%. Although stable compared to September’s projections, the outlook has shown gradual improvement, as noted by other entities, including the Ministry of Finance and the Bank of the Republic.

UN Report on Colombia’s Peace Agreement Progress and Challenges

On October 15, the United Nations Verification Mission for Colombia’s peace agreement implementation presented its fourth quarterly report, outlining the progress and challenges in advancing the 2016 agreement between the Colombian State and the former FARC. The report, a detailed 19-page document by the UN General Secretariat, focused on the Government’s ‘Shock Plan ‘, introduced in July before the Security Council and presented to international delegations prior to the address by Carlos Ruiz Massieu, head of the Verification Mission.

Mexico: female leadership!

On October 1, 2024, Claudia Sheinbaum made history as the first woman to assume the presidency of Mexico. During the inauguration ceremony held at the Congress of the Union, she received the presidential sash from Ifigenia Martínez, a symbolic figure of the Mexican left.

In her speech, Sheinbaum emphasized the importance of women’s representation in positions of power, stating, “I’m not here alone, we’re all here,” and reiterated her commitment to transforming the country. The ceremony was attended by numerous international leaders and concluded with a large public gathering in Mexico City’s Zócalo, where she participated in an indigenous ritual alongside women from various native communities.

Mexico’s 2024 Judicial Reform

Initiated by former President Andrés Manuel López Obrador, Mexico’s 2024 judicial reform introduces substantial changes to the country’s judicial system. Approved on September 13 and published on September 15, the reform mandates the popular election of more than 1,600 judicial positions—including Supreme Court justices, magistrates, and judges—in two stages, scheduled for 2025 and 2027.

It also reduces the number of Supreme Court justices from 11 to 9 and establishes a Judicial Disciplinary Tribunal to oversee and sanction judicial officials. Additionally, it caps judicial salaries so that they cannot exceed the president’s salary. While proponents argue that the reform promotes democratization of the judicial system, it has sparked controversy and concerns over potential impacts on judicial independence.

Día de Muertos

The Day of the Dead, celebrated primarily on November 1 and 2, is one of Mexico’s most cherished and colorful traditions. This holiday honors departed loved ones, and it is believed that during these days, their souls return to reunite with their families. The celebrations include elaborate offerings adorned with flowers, candles, photographs, and foods favored by the deceased, as well as traditional dishes like pan de muerto and sugar skulls.

This tradition comes to life in various regions across Mexico:

• Mexico City: The Day of the Dead Parade, featuring thousands of participants dressed as catrinas and other figures, is a highlight. The streets are filled with altars and cultural activities, including concerts and exhibitions.
• Michoacán: Particularly in towns like Pátzcuaro and Janitzio Island, where families decorate graves in cemeteries and take part in evening processions.
• Oaxaca: Known for its vibrant celebrations that blend music, dance, and pre-Hispanic rituals.
• Guadalajara: The city hosts parades, fairs, and cultural events that showcase the significance of the Day of the Dead in Mexican culture.

In each region, local customs add distinct elements, making the Day of the Dead a unique and deeply personal experience throughout the country.

Peru: Alejandro Toledo Manrique was sentenced

Former Peruvian President Alejandro Toledo Manrique was sentenced to 20 years and six months in prison in connection with the Lava Jato case, a widespread corruption scandal affecting several Latin American countries. 

The judiciary handed down the sentence after finding him guilty of collusion and money laundering. His conviction is part of a series of trials related to the Lava Jato case, which implicated major construction companies and high-ranking officials in extensive corruption activities.

Increase in Key Metal Production in Peru

In August of this year, Peru saw significant growth in the production of essential metals such as copper, silver, lead, tin, and molybdenum compared to the same month in 2023, reflecting the sector’s resilience and dynamism, according to the Ministry of Energy and Mines (Minem).

The month-on-month data reveals production increases for copper (10.9%), gold (5.1%), zinc (6.3%), silver (18.8%), lead (2.2%), iron (2.4%), and tin (0.4%) compared to the previous month, as reported in the Mining Statistics Bulletin (BEM) compiled by the General Directorate for Mining Promotion and Sustainability. 

The cumulative data from January to August also show notable increases across most major products, including gold (10.5%), silver (13.6%), lead (9.6%), iron (1.5%), tin (44.7%), and molybdenum (30.3%), relative to the same period in 2023.

Central America

Evolution Free Zone in Grecia drives economic growth with 6,000 initial jobs and attracts high-tech companies

Costa Rica recently achieved a significant economic milestone with the inauguration of the Evolution Free Zone in Grecia in 2024. This promising business park, established with an initial investment of $50 million, aims to create 6,000 jobs in its first phase, with projections to reach 20,000 jobs over the next 15 years. The park has already attracted interest from 25 high-tech and medical device companies, including prominent names such as Inari Medical, Johnson & Johnson Medtech, and Accudyn Products Inc. Strategically located near major transport hubs, Evolution Free Zone offers a favourable environment for innovation, advanced manufacturing, and STEM-focused career development. This development highlights Costa Rica’s commitment to attracting foreign investment and strengthening local economies, paving the way for sustainable growth in high-value industries.

Guatemala: Foreign investment contributed over $800 million

Guatemala aims to attract $1.9 billion annually in Foreign Direct Investment (FDI), with Panama, Central America and the Dominican Republic, and the United States being the primary sources. In recent years, FDI has shown a positive trend, though it remains insufficient compared to countries like Costa Rica and the Dominican Republic, which each exceed $4 billion annually. To bolster its position, the government has launched the National FDI Attraction Strategy, focusing on infrastructure improvements and reforms such as the Competition Law. President Bernardo Arévalo stressed the importance of attracting innovation and technology to increase competitiveness.

Panama strengthens its Stopover Panama Programme

To boost tourism and support Panama’s economic recovery, Copa Airlines, the Panama Tourism Authority (ATP), and PROMTUR Panama have relaunched the Stopover Panama Programme, under the concept “Panama has it all and very close.” With a combined investment of $1.5 million, the campaign seeks to position the country as a diverse and accessible destination in the region.

Evolution Free Zone in Grecia, Costa Rica, drives economic growth with 6,000 initial jobs and attracts high-tech companies

Costa Rica marked an economic milestone with the inauguration of the Evolution Free Zone in Grecia in 2024. This promising business park, with an initial investment of $50 million, aims to create 6,000 jobs in its first phase, with projections to generate 20,000 jobs over the next 15 years. The park has already attracted the interest of 25 high-tech and medical device companies, including major names like Inari Medical, Johnson & Johnson Medtech, and Accudyn Products Inc. Strategically located near key transport centres, Evolution Free Zone offers a favourable environment for innovation, advanced manufacturing, and growth in STEM-focused careers. This development underscores Costa Rica’s commitment to attracting foreign investment and boosting local economies, paving the way for sustainable growth in high-value industries.