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Latin America Investment News on Viva Tropical

It’s a Good Time to Invest: Latin America Business Climate at Its Highest Level

Article Summary:

The Economic Climate Index (ECI) in Latin America rose in April to 5.2 points, its highest level since the 5.8 points from July 2011, according to a study released today by the private economic research center Getulio Vargas Foundation (FGV).

Photo Credit: El Economista

Original Article Text From El Economista via Google Translate :

Business climate in LA back to its best level in nine Months

The indicator of business climate in Latin America has been in recovery since October 2011 when it recorded its lowest in two years (4.4 points) as a result of the international economic crisis, according to the quarterly assessment conducted jointly by the FGV and University of Munich (Germany).

Although the index in April rose about 5 points recorded in January this year, has not yet recovered 5.6 points measured in the fourth month of 2011.

ICE is comprised of the Present Situation Index (ISA), a situational assessment, and the Expectations Index (EI), the projection for the next six months.

According to the study, which surveyed 149 specialists from 18 countries , while the ISA dropped from 5.8 points in January to 5.6 in April, IE rose from 4.2 to 4.8 points in the same period.

According to the FGV, although analysts expect a recovery in the economy of the region in the coming months, Latin America is still in phase “decline of the economic cycle”.

By country, only three of the eleven analyzed showed a worsening business climate between January and April: ICE fell 4.7 points to 3.4 in Argentina, from 4.2 to 3 points in Paraguay and 4.5 to 3.4 points in Venezuela.

Countries where more ICE rose in the period were Peru, whose index rose from 6.4 to 7.2 points, Chile (4.9 to 6.2), Ecuador (6 to 6.7), Bolivia (from 4.3 to 5) and Mexico (4.1 to 4.8).

The indicator remained stable in Brazil (6.2 points) and Colombia (6.7), and rose slightly in Uruguay, from 6.3 to 6.4 points.

Peru (7.2 points) traveled to Colombia (6.7 points) as the country with better business climate in Latin America, while Paraguay (3) replaced Mexico (4.8) as the worst.

According to experts consulted by the study, the problems that caused the fall of the indicator in Argentina are “inflation, lack of confidence in the policies of Government and lack of competitiveness. ”

In Paraguay, the situation worsened due to “lack of confidence in government policies, lack of competitiveness, lack of skilled labor, unemployment and shortage of capital.”

The main problem for Chile and Peru is the lack of skilled labor, to Colombia, the lack of competitiveness, and Bolivia, the lack of confidence in government policies.

Ecuador suffers from lack of confidence in public policies and competitiveness, Brazil lacks skilled labor and competition, and Uruguay suffers from barriers to exports, inflation, lack of competitiveness and lack of skilled labor.

In Venezuela, inflation combined, lack of confidence in public policies, lack of competitiveness, skilled labor, as well as barriers to exports and deficit.

Link to Original Article:

From El Economista

Latin America Investment News on Viva Tropical