Despite the pandemic, Latin America has long been a highly globalised economy and attractive to international markets. According to CEPAL (Comisión Económica para América Latina y el Caribe) Brazil remains the key recipient of foreign investment in the region. Meanwhile Chile, Colombia, Peru and Paraguay have increased their levels of Foreign Direct Investment (FDI) and in Mexico the European Union surpassed investment by the United States for the very first time. In addition, Costa Rica and Panama are the main recipients of FDI in Central America and the Dominican Republic being the core market within the Caribbean.
Another of the region’s greatest strengths is its people. Population-wise, Latin America is particularly attractive due to its high concentration of talent, which in turn represents a growing critical mass of consumers in search of better products and increasingly sophisticated services. Also, it offers competitive labour costs and a growing young middle class that drives growth and seeks out innovation.
The region still has much room for private investment in infrastructure, which plays a very important role in the development of Latin American countries. Thus, organisations have ample possibilities to bring large-scale projects to the marketplace.
During the pandemic, many governments in Latin America offered extensions and exemptions to some fiscal obligations in response to the sanitary crisis. This is also the cause for changes in trade policies to facilitate the export of goods to Latin America, as a result of the scarcity derived from this situation.
Finally, the region’s proximity to the United States of America and the various different access routes make Latin America the perfect starting point for expanding towards the multiple options offered by the US market.
Why RSM?
Only a global firm oriented to the middle market such as RSM offers the possibility to invest into the region and expand your business whilst complying with local obligations, applying common methodologies in all countries and maintaining the highest quality standards. The combination of our global perspective paired with local knowledge of commercial and labour rules amongst others, positions RSM as an agile and competitive player within the market. At RSM we are passionate about understanding our clients' businesses to accompany them every step of the way as they grow and develop. So, where would you like to start?