Floods, political upheaval and investor caution have created infrastructure shortfalls in much of Latin America. Ivan Castano Freeman reviews project progress, re-routed trade flows, and opportunities for banks and export credit agencies
After a 2019 that saw an average of nil economic growth across South America, market observers note that the region is poised for a cyclical recovery, with its two largest economies – Brazil and Mexico – offsetting the impact of further potential political turmoil with stronger exports and ambitious infrastructure expansion.
Prospects for the region’s other members are a little less upbeat. “Activity in the rest of Latin America will also accelerate, but idiosyncratic events remain more relevant than cyclical considerations,” commented Deutsche Bank’s Emerging Markets Monthly team at the end of 2019.1 Examples of these events thus far have included civilian unrest, natural disasters and corruption scandals. Will the new decade offer more of the same, or greater stability? Either way, it could well be something of a turning point.
This article takes a closer look at what is driving the supply and demand of trade finance in the main regions, and what governments are doing to attract lenders.
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