Monthly Archives: April 2017

Latin America reignite growth by connecting

The region needs to build a more diversified and sustainable economic base, focusing on consumers as the pivotal driver of growth both globally and at home.

With turmoil and recession in Brazil and Venezuela in the headlines, the rest of the world too often assumes the news from Latin America is uniformly bad. But there are bright spots of momentum from Colombia to Mexico and Peru. Chile is maintaining modest but steady growth, while Argentina, enjoying renewed access to the world’s capital markets, is beginning to stage a comeback.

These green shoots are good news, but the region needs a strategy with firm roots that can begin raising living standards for all citizens. To turn this start into sustainable growth, the region needs to take a hard look at the changing global economy and at its homegrown economic challenges.

A great deal of Latin America’s momentum over the past decade was built on the world’s seemingly limitless appetite for the region’s commodities. Today it’s a far different picture; not only have once-soaring commodity prices plummeted, but investment is also down across much of the world. China is the harbinger of change, as it attempts to shift to a model of slower but more sustainable growth driven by consumption, services, and innovation. In this new landscape, Latin America cannot afford simply to wait for the next commodities supercycle to restore growth.

The region needs to build a more diversified and sustainable economic base, focusing on consumers as the pivotal driver of growth both globally and at home. It is critical to know which segments will have the purchasing power and the inclination to spend, as well as where they are and what they want to buy.