The Americas

Increasingly, a larger number of markets in Latin America command attention from global investors. Mexico, Colombia, Argentina and Peru are among the most dynamic markets in the region. With them, other smaller nations of the Caribbean like Trinidad and Tobago have regained interest thanks to diversification efforts and the comeback of commodity prices. Strong finance sectors, backed by greater public spending and a constant aim in developing added-value industries are helping the LatAm economies to further develop, increasing the participation of foreign investment within their borders and escaping from a yet sometimes excessive dependence on commodities and their volatility. 
 
While it has found back the path for growth, the region is not exempt of economic challenges. Venezuela´s structural crisis affects the continent as a whole, while instability remains an issue in giant powers like Brazil. In 2018, three major markets - Brazil, Colombia and Mexico - have undergone electoral processes, thus the eyes of investors are now put on their new or upcoming administrations. 

Overall, growth remains strong in the market’s covered by OBG. Since neither price nor consistency of demand for commodities can be constantly assured, the region is moving slowly to implement value-added processes to maximise the income from natural resources, a process that must be further accelerated and supported. Other challenges for the region include high levels of informality, low levels of productivity, and deficits in transport infrastructure, all of which are being addressed mainly through vast PPP programmes.

Report: What is the outlook for growth for Latin America’s petrochemicals and logistics sectors?