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NEWS     LATIN AMERICA BRIEF

LATIN AMERICA BRIEF

Is Bolivia facing a phase of political instability?

The country has the largest lithium reserves in the world. However, Western companies have not yet been able to get their hands on them. Companies from China and Russia are further ahead. Now Bolivia could become part of the BRICS.

Mexico faces an uncertain future with Claudia Sheinbaum

The future president and her party will have more power than most of her predecessors. The financial markets are reacting nervously to this. German companies continue to back the country.

There are still many democracies in Latin America, but their quality is declining

After Europe and North America, it remains the region with the highest density of democracy in the world. However, the lack of security is the main reason why authoritarian governments are tolerated.

Stable growth prospects for Latin America, but at a low level

The IMF’s latest forecasts for the region’s economies are cautiously optimistic. And this is where the country with the highest growth worldwide is located.

Onshoring works in Latin America, but not as expected

Hopes for the positive effects of nearshoring were high, but the reality so far has been different. Western companies are hardly relocating, but China is seizing the opportunity.

Will Milei live up to the high expectations?

Many Argentinians wish that the president’s reform program would succeed. He has also become the new beacon of hope for German business and politics.

China launches a new investment approach in South America

Brazil is becoming the blueprint for expansion in the industrial value chains and in R&D. This is competition for Western companies in particular.

How the elections in El Salvador could influence politics in Latin America

After the re-election of Nayib Bukule, his policy of a firm hand against crime but also the rule of law could find imitators in the region.

Outlook 2024: Can Latin America leave its long stagnation behind?

The chances of this are good. Global interest in the region is growing and it remains stable in a world of increasing crises.

2023 – the year geopolitics came to South America

The region is increasingly being drawn into the disputes of the world powers and local conflicts are threatening to become geopolitically charged.

Are the EU and Mercosur in the final sprint towards an agreement?

President Lula in particular is strongly committed to achieving a result. Will the EU go along?

Latin America is becoming more important as an oil supplier for the global market

Guyana, Brazil and Argentina are increasing production, while Ecuador, Mexico, Colombia and Venezuela are losing ground.

The outlook for Argentina’s economy is better than it has been for a long time

The country could benefit more than almost any other from the changes in geopolitics and the energy transition. But this requires a clear reform course.

Venezuela’s oil industry returns to the world market

The government has promised clean elections for 2024. In return, the USA is easing its sanctions. It is uncertain whether President Maduro will keep his side of the bargain.

Mercosur is at odds

One against all: Argentina is fighting over water rights on the Río Paraná. After the upcoming elections there, it could become even more difficult to find a common position.

“Latin America’s GDP is twice that of India….

…but with only a third of the population”. Megainvestor Claure believes the region could be in for its best years in a long time.

“China’s loss is not Mexico’s gain”

The country continues to rely on an investment boom due to the decoupling of the USA from China. The potential has only been partially exploited.

Good news from the Amazon – but how is the EU reacting now?

Brazil’s Amazon clearing is falling again for the first time. At the same time, President Lula wants to unite South America’s governments to save the rainforest.

The EU and Latin America reconnect

EU-CELAC summit brought investment of US$45 billion for the region’s infrastructure and confidence for the EU-Mercosur agreement.

Brazil achieves historic tax reform

It could bring about comprehensive improvements in the framework conditions for the economy and trigger a growth spurt.

Buenos Aires, Santiago and Montevideo leading in quality of life in Latin America

Latin America’s business cities are expensive by international standards – but at the same time offer only medium quality of life.

Can Brazil become the “Switzerland of Latin America”?

The outlook for economic and monetary stability is good, but government and congress are wrestling over the course of economic policy.

The chances for an EU-Mercosur free trade agreement are sinking

For environmentalists, the agreement’s protection of the Amazon does not go far enough. At the same time, President Lula is losing his appeal as an integration figure.

Is the election result in Chile the beginning of a shift to the right in Latin America?

Still at the end of 2021, a majority elected the leftist Gabriel Boric. Now, there is a conservative landslide victory in the elections to the Constitutional Council.

Increasing pressure on central banks and finance ministers in Latin America

Despite economic growth of 2.1 percent, policymakers plan to counter the slowing economy with interest rate cuts.

Brazil and Mexico have the same problem: they are growing too little

The most important economies in the region are currently developing in a surprisingly similar way, but have completely different structures.

EIU Democracy Index: Chile rises, Mexico loses

In South America, the democracies were able to hold their own: This is particularly true of Brazil, Colombia and Chile.

Germany and South America update their relations – it was about time for that

The chancellor’s trip paves the way for closer cooperation with the long-neglected region.

The German Chancellor visits South America – the timing could not be better

For Brazil, Argentina and Chile, but also for the German economy, the trip sends an important signal.

EU-Mercosur Agreement: Is 2023 the last chance?

Mercosur was divided at the most recent summit. Brazil urgently needs to provide impetus for a new integration of South America.

Geopolitical relaxation with the USA makes Venezuela interesting again

For four years, the country was an international pariah. That is changing. The German economy should keep an eye on Venezuela again.

The Inter-American Development Bank faces a change in leadership

A more agile funder with more risk appetite and capital would be an asset to the region.

Positive signals for democracies worldwide come from Brazil

The country’s democratic institutions have recently been put to the test, but they have held their ground.

Latin America’s economy caught in the maelstrom of the ailing global economy

Growth prospects are dimming, but the region is already much further ahead than Europe or the USA in fighting inflation.

The Brazilian elections have already changed the political map of Latin America

Right-wing conservatives will dominate Congress and the states, even though a new president has not yet been named.

Brazil’s economy is surprisingly positive

With 2.6 percent GDP growth, low unemployment, a stronger real and high investment inflows, the outlook is favorable.

Foreign corporations cautious about investing in Latin America

Ahead of the constitutional decision in Chile and the elections in Brazil, investors are hesitant to commit. The outlook for growth is also gloomy.

The course for the future of democracies in South America is currently being set

The inauguration of President Petro in Colombia, the referendum on the new constitution in Chile and crucial elections in Brazil are on the horizon.

Mercosur is orienting itself towards Asia

A free trade zone has just been agreed with Singapore and Uruguay wants to open up to China, while the EU and EFTA are holding back.

In Latin America, hawks sit at the central bank levers

In times of inflation, bitter experience has probably led to early countermeasures being taken there.

Latin America’s economies continue to lose competitiveness

Nevertheless, investors seem to choose the region because of the size of the domestic markets.

Will Latin America benefit from the withdrawal of US companies from China?

If the region can become an attractive alternative by improving the business climate, infrastructure, and logistics.

Election forecasts become difficult in Latin America

Representatives of the traditional parties are currently having a hard time at the ballot box. But can the surprise winners deliver on their promises?

Latin America seeks neutrality in geopolitics

Washington is struggling to gather the region’s heads of state for the Summit of the Americas. The countries have been neglected too much – a warning for the EU as well?

Uruguay and Costa Rica global role models as democracies

Even though the systems are under heavy pressure, Latin America remains the region with the highest density of democracies after North America and Western Europe.

Why Brazil and South America are becoming more important for us due to the Ukraine conflict

Because of its wealth of raw materials, energy resources and agricultural products, the region is becoming hotly sought after – this development must not be overlooked.

Mexico’s future prospects darken, but economic conditions are solid

Recent government measures are not only a cause for concern in the economy, but finances nevertheless remain stable.

Latin America votes surprisingly united against Russia

Mexico and Brazil also condemned the invasion of Ukraine at the UN General Assembly. The economic impact is still uncertain.

Surprisingly good outlook for Latin America’s economy

Despite omicron and high inflation, foreign investors are betting on the region. This increases purchasing power, among other things.

Argentina and Brazil move closer to Russia and China

In the current confrontation of China and Russia with the West, South America could move away from Europe.

An OECD offer to South America

Brazil, Argentina and Peru have now the opportunity to become more attractive as business and investment locations through OECD membership.

COVID-19 is back – also in Latin America

However, individual economists see high inflation as a greater threat to growth in the region than the new covid wave.