Latin America Brief

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

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

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

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

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

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

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?

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.

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.

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

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

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

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

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

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