The Brazilian right-wing movement, sparked by Jair Bolsonaro's presidency, is attempting to rebrand and adopt a more moderate stance ahead of municipal elections and the 2026 presidential race. Despite Bolsonaro's political ban, he remains influential, and his allies are navigating a leadership crisis and legal challenges. The Liberal Party aims for a broader appeal, while Bolsonarismo faces a political hangover and comparisons with right-wing successes globally. Bolsonaro's ability to mobilize support is still seen as crucial, but there's a risk of alienating him with a toned-down rhetoric. The movement's future hinges on navigating these dynamics and the outcomes of upcoming elections.

Brazilian analysts have reduced their projections for the country's benchmark interest rate in 2024 following the Central Bank's commitment to continue its monetary easing strategy. The Selic rate is expected to decrease to 9% by December 2024, with further reductions to 8.5% by the end of 2025. The Central Bank, under the leadership of Roberto Campos Neto, has cut the Selic by two percentage points since August, despite medium-term inflation estimates remaining above the 3% target for 2024. The bank also revised its 2024 economic growth forecast down to 1.7% from 1.8%, anticipating a moderation in agriculture and consumption. Finance Minister Fernando Haddad is in discussions with Congress to pass bills that would increase revenues to support President Luiz Inacio Lula da Silva's social and infrastructure initiatives.

Peru's central bank chief, Julio Velarde, announced that the nation's GDP is expected to contract by 0.5% in 2023, revising the previous growth forecast of 0.9%. The economy has experienced six consecutive months of contraction. Inflation estimates for 2023 have been lowered to 3.1% from 3.8%, with an anticipated expansion of 3% and a decrease in consumer price growth to 2.3% in 2024. The recession, one of the worst in years, has been attributed to factors such as El Nino's impact on agriculture, social unrest, and weak private investment. Private consumption is expected to increase slightly by 0.2%, while private investment is projected to decline by 7.3%. Inflation is forecasted to fall within the central bank's target range early in 2024.

Brazilian President Luiz Inácio Lula da Silva completes his first year in office amidst increased political division, with a stable approval rating around 56% but growing disapproval at 43%. Lula's return to power after defeating conservative Jair Bolsonaro has left lasting scars in Latin America's most populous country, including false election fraud claims and radical supporters storming government buildings. Despite a stronger-than-expected economy and legislative victories, Lula has struggled to make lasting progress with the opposition. A Quaest survey indicates that while the majority who approve of Lula's government consider it good, the majority who disapprove view it as terrible, suggesting a polarized sentiment. With the economy expected to slow down, the next significant test for Lula and the Workers' Party will be the 2024 municipal elections.

Brazil's First Lady Rosangela da Silva, also known as Janja, is in a dispute with Elon Musk following the hacking of her social media account on the platform X, which Musk owns. Janja criticized Musk for downplaying the incident, which involved lewd images and insults posted on her profile. She has threatened to sue the company for being slow to respond to the breach. Musk has denied that his company is to blame for someone guessing her email password.

Brazil's President Luiz Inácio Lula da Silva is set to demonstrate the country's commitment to sustainability at COP28 in Dubai, with plans to present environmental protection policies and attract funding for sustainable projects. Lula has prioritized the Amazon rainforest, pledging to end deforestation and winning the bid to host COP30 in Belém in 2025. Despite challenges, including resistance to ending illegal deforestation and the exploration of an offshore oil deposit, Lula's government has reduced deforestation by 22.3% and seeks to establish Brazil as a leader in climate action in the Global South.

Unemployment rates in Brazil and Mexico fell in October, with Brazil's rate dropping to 7.6 percent, the lowest since 2015, and Mexico's to 2.75 percent. Strong labor markets have contributed to the economic outperformance of Latin America's largest economies despite high interest rates. Brazil's employment numbers exceeded 100 million, although 20 million workers are still underutilized. Mexico saw a rise in employed people to 59.4 million, a year-on-year increase of one million. Both countries have experienced growth in consumer confidence, demand for goods and services, and economic forecasts, with potential interest rate reductions discussed for the near future.

Mexico's annual inflation increased slightly in early November, with consumer prices rising 4.32% compared to the same period a year earlier. Core inflation, which excludes volatile items, slowed to 5.31%. Banxico, Mexico's central bank, maintained its benchmark interest rate at 11.25%, the highest since 2008, but signaled openness to future rate cuts. Energy prices were the main contributor to inflation after the end of government subsidies, while food prices also increased. Despite high borrowing costs, Mexico's economy remains resilient, supported by a strong labor market and trade with the US. Inflation is expected to moderate in the coming months.