Latin America’s economy is facing a «complicated» environment, but it is better prepared to face a crisis than in the past, making it an «ideal» region for investment.
This is one of the conclusions reached in the first of the panels held at the 24th 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, took part.
In this panel, the participants highlighted «the speed» with which some important economies in the region, such as Brazil and Mexico, have reacted to the rise in inflation. «They have not been fooled by the economic outlook. Crises are hardening,» said the head of Banco Santander.
Isasi pointed out that Latin America has become a «key player» in the current environment because it has the best resources to face the challenges.
However, the president of Santander Spain recalled that inflation continues to be a major challenge and an obstacle to investment. «Low and stable inflation is necessary, otherwise investment is discouraged,» he explained.
For his part, the president of ICO wanted to focus his speech on the opportunities that his organization gives 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 said.
BRAZIL, VOLATILE BUT WITH A LOT OF CAPACITY For his part, the CEO of EDP Brazil 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 highlighted the independence of the judicial, legislative and executive powers, the regulatory stability and the energy potential, a field of his expertise.
He also reminded investors that they should take a «long-term» view and not be concerned 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.
