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Article28 Mar 2023

Latin America - Trends and Opportunities

Like in other parts of the world, forecasts indicate that economic disruption will continue to impact Latin America during 2023.

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Growth in Latin America is predicted to slow to 1.4% during the year1, driven by adverse external conditions and monetary policies aimed at tackling high inflation rates, with the effects exacerbated by high interest rates. The cost of living and political crisis have fueled widespread protests, causing a decline in disposable incomes and loss of consumer confidence, which is expected to affect credit growth. However, companies in Latin America have proven resilience and skill and appetite to tackle these challenges and take advantage of new opportunities based on changing market dynamics.

Redefining supply strategies In this context, companies in Latin America have been forced to redefine their strategies to mitigate the impact of this complex set of economic, consumer and supply chain challenges, whilst continuing to pursue sustainability objectives, innovation and growth. Corporations have been looking not only for ways to better manage their working capital, but also for new efficiency strategies and revenue opportunities, looking beyond their operational boundaries and creating new business models in collaboration with supply chain business functions and partners.

 

Article was published in partnership with BCR.

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