Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Cheng Siew Chua on “IMF urges Thailand rate cuts that central bank says not needed”
“The Thai central bank has rejected the International Monetary Fund’s recommendation to cut interest rates to boost its economy. Before making any moves, the central bank will monitor the progress of the government’s US$18 billion economic plan, which was put in place last year. Multinationals should expect interest rates to remain stable over the coming months.”
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Natalia Duarte on “Peru election: Kuczynski wins, but Fujimori has yet to concede”
“It appears Kuczynski has defeated Fujimori 50.12% to 49.88%. Although 50,000 ballots are being reviewed, experts claim it is nearly impossible for Fujimori to make up the difference. The winner will not be named president-elect until the electoral board makes the vote official, and Fujimori is waiting on this announcement before conceding. Once announced, the winner will take office on July 28.”
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Pratima Singh on “There Is No Real Case To Suspect The Integrity Of India’s GDP Numbers”
“Multinationals should be cautious of the hype surrounding India’s impressive GDP numbers. It would be prudent to wait for the CSO’s supply and use data tables and to examine the changes in growth rates to get a sense of how the economy is performing. Read FSG’s report on India 2020: Outlook and Scenarios for more details on how the old and new GDP series compare.”
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Antonio Martinez on “President’s Party Dealt Losses by Corruption-Weary Mexicans”
“The ruling PRI’s losses in state elections last Sunday have demonstrated the increasing valence of anti-corruption sentiment in Mexican politics, and have reduced the likelihood that the PRI will hold on to the presidency in 2018. Multinationals should be heartened that the elections largely benefited the business-friendly PAN rather than the upstart MORENA party led by Andres Manuel Lopez Obrador.”
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