Thursday, December 1, 2022

The Latin American economy faces a “complicated” environment, but with positive investment prospects

The Latin American economy is facing a “complicated” environment, but it is better prepared to face a crisis than in the past, which makes it an “ideal” region to invest.

This is one of the conclusions reached in the first of the panels held at the XXIV Latibex Forum, entitled ‘Challenges in the economic development of Latin America and Spain’, in which the CEO of EDP Brazil, Joao Marques da Cruz; the president of ICO, José Carlos García; and the president of Banco Santander in Spain, Luis Isasi.

In said panel, the participants highlighted “the speed” with which some important economies in the region such as Brazil or Mexico have reacted to the rise in inflation. “They have not been fooled by the short-term vision. Crises last”, pointed out the head of Banco Santander.

Thus, Isasi has pointed out that Latin America has become a “key actor” in the current environment because it has the best resources to face the challenges.

All in all, the Chairman of Santander Spain recalled that inflation continues to be a major challenge and an obstacle to investment. “Low and stable inflation is needed, otherwise investment is discouraged,” he explained.

For his part, the president of ICO wanted to focus his speech on the opportunities that his organization offers to those companies that want to invest in the Latin American market or that want to participate in tenders. “Our objective is to facilitate commercial, economic and investment relations in the process of internationalization of companies”, he has expressed.

BRAZIL, VOLATILE BUT WITH GREAT CAPACITY
For his part, the CEO of EDP Brasil wanted to focus on the advantages of the investment market in Brazil, highlighting its productive capacity and its potential for emerging investors.

Among the reasons, Marques has highlighted the independence of the judicial, legislative and executive powers, regulatory stability and energy potential, field of his knowledge.

Likewise, he recalled that the investor must have a “long-term” view, and not show concern about short-term volatility, especially in the current moment of political change, where certain statements on fiscal policy are causing turbulence in the Brazilian market. .

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