Latin America is undergoing a "trifecta of change" that signals a decisive shift from consumer-led cycles toward a robust investment and CAPEX-driven growth model. This transformation is fueled by shifting global geopolitics that rewrite supply chains, a projected decline in interest rates through 2026, and a regional move toward fiscal responsibility following elections in countries like Brazil, Colombia, and Argentina. Despite representing a $6 trillion GDP, the region accounts for only 80 basis points of the MSCI All-Country World Index, suggesting significant room for a valuation rerating. A critical driver for this deepening of capital markets is the massive pool of domestic savings; currently, Latin American portfolios are heavily skewed toward fixed income—reaching 95% in Brazil—and even a partial shift toward equities could provide substantial support for financial services, energy, and IT sectors. This transition positions the region to evolve from a mere commodity supplier into a sophisticated, investment-driven engine of growth.
Sign in to continue reading, translating and more.
Continue
