Prospects for Latin American economies in 2019

There are a number of characteristics that the Latin American countries share, that in the coming years will either enhance or hinder their international presence and influence. Reliance on natural resource exports to generate government revenue is risky, as commodity prices are volatile and unpredictable. Europe and the United States have been increasingly hesitant to provide direct investment to the region, especially since the collapse of Odebrecht, the region’s largest construction company. Countries must adhere to the standards set in place by international lending institutions, many of which impose stricter guidelines that governments are struggling to fulfill. The region continues to suffer from rampant violence, income inequality, and slowed growth in per capita income. The largest economies in Latin America rank lowest on the Corruption Perception Index, making them even riskier for foreign investment despite greater potential for economic success. Peru and Chile will likely experience economic growth in the next year and are committed to fighting internal corruption, while others, such as Brazil and Argentina, are at a disadvantage in large part due to political instability. 

Read the full report here.