Latin America’s Snapshot
Update for Mid Q2 2017
Internal moves are slowing the projected recovery,
but that has never been an excuse
We heard predictions in the Q4 2016 for an overall economic improvement in Q1. As this preliminary data showed, such a dramatic increment would have been the first reported growth in the last couple of years.
The Q1 2017 Focus Economics report estimated an increase of 0.3% of the aggregate GDP year after year (Reporting -0.4% by Q4 2016), just a little above the 2.0% that Focus Economics, regional banks, and the FMI had projected.
Mexico – Q1 GDP climbed to 6/4 high because of, a predicted but still unexpected, higher remittances from the United States, a chain reaction from stronger global growth and fluctuating currency.
When the numbers let us down, we wish we had considered the contextual situation in each government that affects from that countries role in the world’s economy to the smallest business when the structural vulnerability has a social origin; it can shake the very mood of its inhabitants like Venezuela shows below.
Venezuela – Is still undergoing through hard times, suffering public quarrels that have a political root in politics. Mainly these factors are keeping Venezuela’s economic forecast, at least for this Q2, from using its considerable resources.
Argentina -The contraction in February’s monthly economic activity just called to highlight slow recovery. I concur with other sources from the private industry that the causes are the expected decrease of inflation happened slower than predicted and a relatively stable peso.
Brazil – President Michel Temer is going through a tortuous road to take into action the so much needed social security reform, which has been specially planned to stop the government’s budget deficit.
Although a select lower house committee voted for the project, the Brazilian President still needs the minimum vote of two-thirds to approve this initiative.
It will be too brave to try predicting any more about Brazil’s economy since they have the difficult challenge of re-igniting an economy that is continuously contracting for almost 3 years.
Chile – The world’s largest copper mine, Escondida, suffered the 43 days long strike that triggered the Chilean stability to tilt, for the first time since 2009, towards recession.
For the Latin-American average person, I will dare to say it confident as I don’t only know them, but I am one of them; crisis, inflation and financial issues are challenges. You may know the saying:
“Necessity is the mother of the greatest inventions”
We speak in general of highly creative people. Able to do whatever is needed to protect their families.
As a supporting economy trying to do business with Latam, we can see that probably Now is Not the right moment to sell luxury commodities, we have a good reason to think by the mid Q3 we would be able to do it. Instead, this is a great moment for products of first need and services, food, babies, health, beauty, etc. the later oriented to no lower than C markets; all those warehouses expecting to sell high volume at a low price, that is pretty much self-explanatory. also, will find a good echo “help” services, such as: Payment getaways offering high security and lower interest rate, natural energy generators may enjoy a 20% share, the opportunity is wide open, but the money is not running as we wish, it is a good idea to consider new models where results can be dramatically improved. Whereas energy savers have a greater opportunity.
This is also a great moment to gather incredibly professional work force or experts on any subject (Product Engineering, for example) or to grow your business when you open shares, such as distribution. The first step to gain a share in Any Market is to help them have the money to do it.
Consider filters or automotive accessories made to save energy. Safety products and services: Certifications, Electrical testers, safety equipment, shoes, safety clothing in general.
If anyone is thinking in opening a services marketplace, Latam is the best place and now is the moment, plus, as we will show in a future report, we have only a few years left to create and consume our own technology (I mean, Silicon Valley and Western-Europe in the Freelancer form). We need to teach other countries to use it and create it. That is a call for internet learning.
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Hasta pronto, have an awesome weekend!
Highlighted and researched by: Mariana Salcido
Your Agency Partner for Latin America
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