Whitestone Americas

11/02/2020

Latin America In 2020: Low Growth, Low Interest Rates, High Risk

We expect 2020 to be another year of low growth for Latin America as many economies experience some of their lowest growth rates since the global financial crisis. We see the region growing less than 2% for a seventh consecutive year.
The main reason is the underwhelming levels of investment--in most cases, weak investment is due to uncertain domestic political dynamics.
We've lowered our 2020 GDP growth projections for Mexico (to 1.0%), Chile (to 2.4%), and Peru (to 2.8%), and we continue to expect the Brazilian economy to improve in 2020, with GDP growth of 2%, up from 0.8% in 2019, bolstered by the impact the recent reform push will have on investment.

February 11, 2020
WA

30/11/2019

30/11/2019

To be continued......

Latin American governments have made great strides in putting their fiscal house...

30/11/2019

in private equity there is always this reason to see political stability. But on the other hand is its the best times to do business because my competition.

This year has already been the biggest in a decade for share offerings from Brazilian companies, but there has been little sign of the foreign investor appetite that fueled prior rallies, as weak growth and divisive politics keep many on the sidelines.

25/09/2019

Bad marriage....

Shares in Brazilian planemaker Embraer fell more than 1% at the open on Monday, ...

20/08/2019

The fight of the two enemies of the stability of the country. There are no miracles ........

The financial market increased the projections for economic growth and reduced the inflation estimate for this year. According to the Focus bulletin, a research released weekly by the Central Bank (BC), the forecast for the expansion of the Gross Domestic Product (GDP) has been adjusted from 0.81 pe...

20/08/2019

To be continued.......

Brazilian power company CPFL Energia is in an expansion phase that could include...

14/08/2019

To monitor....

Argentina's President Mauricio Macri lost by a far greater margin that expected in primary elections on Sunday.

08/08/2019

What's gone wrong with Brazil's economy?
In January, when Brazilian President Jair Bolsonaro took office, many people in the country feared the divisive politician could not bring the country together.
But one sector has almost unanimously praised Bolsonaro's rise to power.
The Brazilian president boasted during the election to understand nothing about the economy.
Once in power, he delegated all decisions on the subject to the businessman Paulo Guedes, become "super minister" of the economy, which is no worse than another.
The exit of the impasse of the Brazilian economy was necessary. The economy is still at the same level as in 2014.
Markets were excited about the prospects for promised liberal reforms.
But what's going on, is Brazilian Bolsonaro's honeymoon over?
Dreams begin to collapse. A series of blunders from the government accompanied by internal political struggles within the administration, a clumsy government intervention in various sectors, such as fuels and lack of congressional leadership, have held back expectations of growth .
The possible credibility of Brazil will not be before 2020.
WA - OMB Team

08/08/2019

Venture capital fuels Latam 'unicorns' expansion beyond borders
Surging venture capital investment in Latin American startups has financed international expansion across the region and beyond, as business models that do not require large amounts of capital have helped many firms avoid silos common in the region.
Private capital investment in Latin America, the new venture capital financing in the region has quadrupled in two years to a record $ 2 billion in 2018. And this total has already been matched in the first seven months of 2019.
Analysts estimate that fundraising this year could double the 2018 total, thanks to Japan's SoftBank Group Corp., which launched its $ 5 billion fund in Latin America in March, the largest venture capital venture ever of the region.
SoftBank's investments this year have created a new wave of Latin "unicorns", or new technology companies valued at more than $ 1 billion, whose high expectations depend on their potential beyond their home country. origin.
André Maciel, managing partner of the SoftBank Latin America Fund, sees huge potential for these companies to tackle regional barriers to productivity. China's annual productivity growth has been 8.8% since 1990 and India's growth of 5%, while Brazil has posted a rate of 1.3% over the same period, according to the data. from McKinsey.

WA-OMB