It was starting to look like things were getting better at last.
And then … China.
After three decades of rapid economic growth, the world’s second-largest economy is facing a slowdown that some experts fear is structural. China may be in for a long slog, a decade or so of 3% or 4% annual growth. This poses a new challenge for Latin America and the Caribbean just when more of its central banks are starting to cut interest rates as inflation recedes. How will China’s new reality affect the region? Tom Azzopardi and Hernán Goicochea explore this in our cover story. The court is still out on the potential impacts, but it’s not looking too good. Latin America depends on high commodity prices and cheap, abundant global liquidity to grow and develop. A negative shock to China affects both.
Our cover by Ivan Canu gives a glimpse of what’s at stake.
Nouriel Roubini, a famed economist known as Dr. Doom on Wall Street, also weighs in on the China issue and its potential drag on Latin America in a Q&A in our Parting Shot. There are a few bright spots in his outlook.
We also have exclusive interviews with Paraguay’s new president, Santiago Peña, and the head of the Inter-American Development Bank, Ilan Goldfajn.
Rodrigo Amaral dives into the world of project and infrastructure finance in the region, finding out that more private investment is flowing in with creative solutions for projects. In Brazil, Thierry Ogier reports that raising money is getting easier for infrastructure projects. In Mexico, there are new concerns. The nearshoring boom is putting strain on the power grid, and this could limit investment, Rodrigo Alonso Cruz reports.
John Rumsey reports on ESG investment. It’s on the rise, but only the biggest investment managers are likely to pursue costly ESG mandates. And Argentina is back in the news. After years of financial crises, Argentines want change, and this may open the door to a far-right outsider to take a shot at righting the economy.
We also have a new set of recognitions. Find out who won our awards for central bank governor and finance minister of the year – and what they have to say. We also share the stories from the winners of our 2023 Project & Infrastructure Finance Awards.
China’s wobbles may prove a new challenge for Latin America, but the region has a few long-held strengths that can help pull it through.
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