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Latin America Investment News on Viva Tropical

Why Ignoring Investment Opportunities in Latin America Is Not Wise

Article Summary:

A wealth of investment opportunities are being left on the table as Asian countries garner the majority of the world’s global growth and investment attention. The reduction in poverty and rise of the middle class in Latin America have added stability in the region, making it the perfect investment location, say experts.

Photo Credit: Market Watch

Original Article Text From Market Watch:

Booming Latin America Being Ignored, Experts Say

As Asian countries garner the majority of the world’s attention, global growth opportunities in Latin American countries have been treated with “benign neglect,” according to foreign policy and financial experts who spoke at a panel Monday.

The economic community has been “too transfixed with Asia and China” — and the result is a wealth of investment opportunities left on the table, said Antoine W. Van Agtmael, a senior adviser at Garten Rothkopf and author of “The Emerging Markets Century”.

The panelists at the event, hosted by the Council on Foreign Relations, agreed that the economic progress of Latin American countries has largely been overlooked by developed nations, despite continued growth and progress towards stabilizing the region’s economic outlook.

The reduction in poverty and rise of the middle class have added stability in the region, said Claudio M. Loser, president of Centennial Group Latin America and former director of the Western Hemisphere Department of the International Monetary Fund.

Latin America has seen improvements in commodity prices in recent decades and implemented a system of banking supervision that has helped to improve the region’s macroeconomic outlook, said Loser.

Loser named Mexico one of the most important countries in the region, saying that it “has better prospects than Brazil at the moment.”

The positivity surrounding the country is due in part to the presence of shale gas, which can also be found in Argentina. The availability of shale, which can be mined cheaply in the region will “dramatically change” views on energy production in Latin America, Van Agtmael said.

Growth prospects in Latin America, particularly Mexico, will be helped by a slowdown in China, which will reduce growth to about 6% from the previous rate of 10-12%, said Van Agtmael. As tail winds that once benefitted Brazil decline, Mexico is poised to regain an economic advantage, he said.

The greatest threat to Latin American growth is complacency, said Loser, who emphasized that the region has changed enormously in recent years. While many countries have suffered as the economies of the United States and Europe faltered, Latin America has had “a fairly resilient reaction” he said.

When it comes to big picture economic policies and overall resilience, the region gets high marks. Latin America has “gotten their macroeconomic house in order” Van Agtmael said.

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From Market Watch

Latin America Investment News on Viva Tropical