GlobalSource Partners | Country Insights

Data released in May provided plenty of evidence of continuing economic weakness in Mexico, but also glimmers of what could be more positive developments to come, as reported numbers of Covid-19 cases continued to trend lower and pandemic-related restrictions continued to be phased out through mu...

Russia may impose windfall tax on metals

RUSSIA / FSU POLITICS · In Brief · 01 Jun 2021

On May 31 deputy prime minister said that metals companies have unfairly avoided USD 1.4 billion in tax. Andrei Belousov said the government will introduce a windfall tax on the sector. He said the sector ''tricked'' the government. Putin's spokesman supported the windfall tax.Metals companies ha...

Pacheco chooses Alcolumbre as the rapporteur for the Eletrobras MP, Copa America to be held in Brazil and Dr. Nise Yamaguchi testifies in the COVID CPI

BRAZIL POLITICS · Report · 01 Jun 2021

There was some confusion over whether President Bolsonaro supports Administrative Reform yesterday. The proposal is under analysis in the House, and Lira should create a Special Committee in the House to continue analysis. The provisional measure on the privatization of Eletrobras is expected to ...

Politics: Campaign 2021 results forecast - Part Two

MEXICO · Report · 01 Jun 2021

According to the latest GEA-ISA nationwide survey of registered voters, the June 6 congressional election is shaping up to be similar to the 2018 contest in which Andrés Manuel López was elected president and his supporters achieved a majority in the lower chamber of Congress. But there are some ...

Russia's currency reserves top USD 600 billion

RUSSIA / FSU POLITICS · In Brief · 01 Jun 2021

On May 31 it was repoted that Russia's gross international reserves had hit an all time high. The Central Bank of Russia noted that the reserves rose 1.2% from May 14-21. The bank said its comfort level was USD 500 billion. Putin has underscored the importance of building such reserves. He rememb...

Synthesis of the Brazilian Economy

BRAZIL ECONOMICS · Report · 01 Jun 2021

With the death toll still stubbornly high – 1,800 per day in the 7-day moving average – the second wave of Covid-19 contagion is poised to become the start of a new epidemic cycle. The premature relaxation of the rules on opening in sectors where physical proximity is the norm and the still slugg...

Turkey Covid Watch - June 1, 2021

TURKEY · Report · 01 Jun 2021

Covid cases continued to decline this week, albeit at a slower pace. The new measures were officially announced at a cabinet meeting yesterday, including relaxation of curfews and restrictions on intercity travel. In this installment of our Covid Watch, we also provide some illustrative calculati...

Greater restriction on mobility to stop the advance of the third wave of COVID-19

DOMINICAN REPUBLIC · In Brief · 01 Jun 2021

With the advance towards a third wave of Covid-19, yesterday the Government imposed stricter measures to restrict mobility and distancing. During the week of June 2 to June 9, in the National District and in 24 provinces circulation will be restricted from 6:00 pm. at 5:00 am from Monday to Frida...

The pressure for emergency aid and other weekly topics

BRAZIL POLITICS · Report · 01 Jun 2021

This week's Thursday holiday means reduced activity in the Legislative branch. The House may announce the creation of a Special Committee to analyze Administrative Reform. Arthur Lira could announce the rapporteur of the bill that creates the CBS tax. In the Senate, the rapporteur of the Eletrobr...

Robust growth without monetary loosening

CHINA · Report · 01 Jun 2021

Growth is stable. Industrial output was up 9.8% y/y in April, and up 14.1% y/y from April 2019, with annualized growth of 6.8% y/y, the same as in Q1, and higher than the pre-pandemic levels in 2018 and 2019. Investment is still weak, and rose 8% y/y from April 2019, with an annualized growth rat...

Hi tech exports continue to support shekel appreciation

ISRAEL · Report · 01 Jun 2021

Hi-tech service exports and investments continue to expand rapidly, supportive of shekel appreciation. Private consumption has rebounded rapidly since the economy opened up.

The "rebound effect" versus the "hysteresis effect": The projections for the economy in 2021 are betting on the former, but we analyze the latter

PANAMA · Report · 01 Jun 2021

The IMF projects 12% real growth for the year, based on three factors: the vaccination rollout, the private investment recovery, and the "rebound effect" after a 17.9 percent drop in economic activity in 2020. Rating agencies and other international analysts are also projecting double-digit growt...

The marriage of the two unicorns

INDONESIA · Report · 01 Jun 2021

Indonesia has seen an interesting story about the merger of two unicorns, Gojek, a ride-hailing start-up, and Tokopedia, a marketplace platform, both of which were "unicorns" before the merger. The merger of the two companies strengthens the technology companies to reach a possible valuation of s...

Q1 GDP sightly stronger by second estimate

HUNGARY · In Brief · 01 Jun 2021

Q1 GDP was reported by second estimate this morning. At +2% qoq, -1.6% yoy, on sdab basis, it looks somewhat stronger than the preliminary +1.9% qoq, -1.8% yoy.The composition of Q1 GDP was reported for the first time on this occasion. This showed that domestic demand was much weaker than GDP, wi...

Russia to allow flights to UK but prolongs Turkey flight ban

RUSSIA / FSU POLITICS · In Brief · 01 Jun 2021

On June 1 Moscow announced that flights to and from Austria, Hungary, Morocco, Croatia, Lebanon and Luxembourg shall recommence on June 10. That will bring the number of countries with regular flights to and from Russia up to 36.However, travel restrictons on Turkey and Tanzania shall remain in f...