How to Play Latin America as Its Emerging Markets Recover
Earnings growth in Columbia has been weak so far this year. This is primarily due to crude oil price volatility and other geopolitical conditions affecting trade.
Developed markets such as the United States and Canada are among Mexico’s top export destinations. The United States commands about 80% of all Mexican exports.
Chile (ECH) continues to be the lowest-risk country in Latin America (ILF). It’s one of the best-evaluated economies in its region.
The price of copper has increased from around $4,470 per metric ton in January 2016 to more than $4,800 per metric ton in July 2016. That’s a rise of 7.4%.
Argentina’s capital markets (ARGT) saw a net of $869 million of funds flowing into the country’s portfolio investments in the first half of 2016.
For more than a decade, the outgoing party’s continual resistance to honoring debt led to Argentina’s exclusion from international financial markets.
The economy of Peru (EPU) is poised to grow at 4% this year, according to the new finance minister, Alfredo Thorne. This is due to the country’s new mining contracts.
Taking a look at the valuations in Brazil, we see that the economy does look like an attractive destination to park your funds.
The Indian economy is now growing at the rate of 7.9% per annum. The government has abandoned its GDP methodology to calculate economic output.
Fragile Five is a term coined in August 2013 to represent emerging market economies, including India, that had become too dependent on foreign investments to finance their account deficits.
In 2015, Europe, Asia-Pacific, the Middle East, and Latin America contributed 22%, 18%, 12%, and 9%, respectively, to FLS’s revenues.
The World Bank published its June global economic prospects (or GEP) report on June 7, 2016. There was a downward revision of global growth forecasts compared to the January GEP.
The revival of global growth is of the utmost importance to Lincoln Electric. The company’s revenue declined by 1% in 2014 while it further deteriorated by 10% in 2015.
Higher wages mean increased household income, and increased household income leads to increased consumer spending, which would fuel China’s growth.
China has moved past metals and mining to more consumer-centric industries like technology, machinery, food, and energy.
The Chinese economy has been receding, and China saw its double-digit growth rates, recorded after the 2009 economic recession, fall to less than 7%.
A decade of manufacturing and export-fueled growth in China has gotten us quite accustomed to seeing China in that light. This needs to change.
There is very little confidence in the markets that Venezuela will be able to consistently service its external debt.
Venezuela is currently in an economic mess. Petroleum remains critical to its economy, accounting for roughly one-third of gross domestic product.
Since its economy is running on a 5.8% fiscal deficit, Argentina’s ability to borrow in international markets should help to ease its credit conditions.