Blog posts tagged by tag: Latin America
Guest Post from Biz Latin Hub
Global demand for copper is increasing, with a predicted annual growth rate of about 2.6% until 2027. The versatile metal is used in a wide range of consumer goods. Consequently, copper firms are searching for new projects amid a worldwide deficit. As demand quickly grows due to copper’s extensive use in renewable energies, it is an industry full of business opportunities.
Copper will diversify the Panamanian economy and increase its annual GDP growth. Significant investments have already been undertaken by the Canadian firm, First Quantum Minerals, since 2013, in the development of the $6 billion Cobre de Panama mine. Currently, the mining sector only contributes 2.5% to GDP. As the first Panamanian vessel with 31,200 tons of copper was exported this month, the industry has a chance to develop and growth, estimating this figure to reach the 9.5%.
President Sebastian Piñera aims to bring his elder brother’s private pension system into the 21st century
The upcoming overhaul of Chile’s private-led pension system points to business as usual. President Sebastian Piñera—the younger brother of José Piñera who molded today’s system as minister of work and social security under Augusto Pinochet’s military dictatorship—unveiled a bill last October, which raises mandatory contributions from 10.0% to 14.2%, bolsters competition among private administrators (AFPs) and increases the government’s financial support for low pensions. The reform—widely approved by the opposition—modernizes the current scheme and should not have any noticeable effects over economic activity in the near-term, according to surveyed panelists.
2019 is poised to be a better year for the Latin American economy after a tough 2018 characterized by a chaotic and noisy election cycle, a sharp decline in sentiment for emerging-market assets and a U-turn toward global protectionism. Next year, regional growth (excluding Venezuela) is expected to improve to 2.3% from the 1.7% projected this year. Strengthening momentum in Brazil thanks to an improving labor market, less political noise and the faded impact of the truckers’ strike will chiefly fuel the region’s acceleration, while Argentina should drag less on growth after this year’s hard economic adjustment. To a lesser extent, faster growth in Chile and Peru will also boost regional growth.
At the global level, the consequences of the financial crisis put the role that governments should assume when their banking systems face difficulties under the spotlight.
Jair Bolsonaro will take the reins of Brazil’s economy on 1 January, after winning 55% of the vote in the second-round of the presidential election held on 28 October. The congressman and former army captain beat Workers’ Party candidate Fernando Haddad and will be the country’s first right-wing president in almost 15 years. Markets reacted positively to the news, with the Bovespa stock index hitting a record high and the real strengthening the day after the election. With election uncertainty finally lifted from the shoulders of Latin America’s largest economy, FocusEconomics asked some of our panelists to comment on what a Bolsonaro presidency means for their economic forecasts.
Argentinians between the ages of 30 and 50 have inherited a heavy burden: economic instability, political turmoil and flagrant corruption. This combination, as familiar as it sounds to Latin Americans, is of particular relevance in Argentina because it has caused an entire generation to live life discouraged, without a long-term vision and clinging to what they have for fear of losing everything.
Brazil's economy has had a tough time of it so far this year. The truckers' strike, the depreciating real and the uncertainty regarding presidential elections have all contributed to Brazil's economic woes in 2018. In this post, Senior Economist Angela Bouzanis answers some key questions regarding Brazil's economic outlook as we head into 2019.
Economist Christopher Thomas answers some questions regarding Mexico’s economic outlook for 2019 in the wake of the announcement of the new United States-Mexico-Canada Agreement (USMCA) and as President-elect Andrés Manuel López Obrador (AMLO) prepares to take power later this year.
Guest Post from Biz Latin Hub
Central America is for the most part showing signs of emergence and improvement in the international market. Despite fears surrounding security, unrest and corruption, the region is making significant ground in cleaning up its reputation and is a progressively more attractive investment prospect for foreign businesses.
Although much of the economy still remains heavily reliant on traditional sectors such as agriculture and textiles, exciting new trends and opportunities are springing up across the subcontinent as mirrored in the rest of Latin America.
After years of low global interest rates, a tightening cycle in the U.S. has reverberated around the world and sparked a shift in global monetary policy. In Latin America, central banks’ actions are at the forefront of economic discourse, as policymakers respond to challenges created by the tightening cycle and financial market volatility. Moreover, a busy electoral calendar this year and domestic challenges such as large external imbalances in some economies further complicate policymaking. With monetary policy under the microscope, FocusEconomics Latin America economists provide a snapshot of the main central bank governors across the region and their track records so far.
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