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

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

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

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.

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.

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.