Latin America Economic Monitor July 2019

Global
Economic
Slowdown
July 2019
www.nuricumbo.com

Credit Ratings
Argentina
B
With NEGATIVE Outlook
(14 May 2019)
Source: Fitch Ratings
Brazil
BB-
With STABLE Outlook
(21 May 2019)
Colombia
BBB
With STABLE Outlook
(4 December 2018)
Chile
A
With STABLE Outlook
(5 March 2019)
Mexico
BBB
With STABLE Outlook
(5 June 2019)
Peru
BBB+
With STABLE Outlook
(28 March 2019)

$43.32 $44.22 $44.79
$0.00
$20.00
$40.00
$60.00
March April May
Argentina
Exchange Rates
$3.92 $3.92 $3.92
$3.80
$3.90
$4.00
March April May
Brazil
$3,188.74
$3,232.97
$3,379.55
$3,000.00
$3,150.00
$3,300.00
$3,450.00
March April May
Colombia
$679.72 $676.76
$710.21
$640.00
$670.00
$700.00
$730.00
March April May
Chile
$19.43
$18.95
$19.62
$18.60
$18.90
$19.20
$19.50
$19.80
March April May
Mexico
$3.32 $3.31
$3.38
$3.20
$3.28
$3.36
$3.44
March April May
Peru
Source: Bloomberg, 2019.
*USD / PEN
*USD / MXN
*USD / CLP*USD / ARS
*USD / BRL
*USD / COP

Foreign Direct Investmet
$3,260
$11,517
$0
$4,000
$8,000
$12,000
2016 2017 2018
Argentina
$52,751
$67,583 $61,223
$0
$30,000
$60,000
$90,000
2016 2017 2018
Brazil
$13,850 $13,836
$11,010
$0
$5,000
$10,000
$15,000
2016 2017 2018
Colombia
$11,942
$6,856 $7,160
$0
$4,000
$8,000
$12,000
2016 2017 2018
Chile
$30,865 $32,091 $31,604
$0
$12,000
$24,000
$36,000
2016 2017 2018
Mexico
$6,863 $6,769 $6,175
$0
$3,000
$6,000
$9,000
2016 2017 2018
Peru
*U.S. Dollars at Current Prices in Millions
Source: United Nations Conference on Trade and Development, UNCTAD, 2019.
$12,162

Competitiveness Ranking
Argentina
57.986
(Ranking 56)
Source: IMD Competitiveness Index 2018
Brazil
55.797
(Ranking 60)
Colombia
57.357
(Ranking 58)
Chile
75.107
(Ranking 35)
Mexico
63.733
(Ranking 51)
Peru
60.236
(Ranking 54)

Source: Argentina, Brazil, Colombia, Chile, Mexico and Peru Central Banks, 2019.
54.70%
55.80%
57.30%
52.00%
54.00%
56.00%
58.00%
March April May
Argentina
Inflation Rate
4.58%
4.94%
4.66%
3.00%
4.00%
5.00%
6.00%
March April May
Brazil
3.21%
3.25%
3.31%
3.12%
3.20%
3.28%
3.36%
March April May
Colombia
2.00% 2.00%
2.30%
1.00%
2.00%
3.00%
March April May
Chile
4.00% 4.41% 4.28%
0.00%
1.50%
3.00%
4.50%
March April May
Mexico
2.24%
2.59% 2.72%
0.00%
1.00%
2.00%
3.00%
March April May
Peru

$72,803
$70,860
$64,757
$60,000
$66,000
$72,000
$78,000
March April May
Argentina
International Reserves
$378,448
$384,165 $383,799
$373,500
$378,000
$382,500
$387,000
March April May
Brazil
$51,261 $51,522
$51,975
$50,000
$51,000
$52,000
$53,000
March April May
Colombia
$38,710
$37,902
$38,231
$37,200
$37,800
$38,400
$39,000
March April May
Chile
$176,466 $176,661
$178,291
$174,000
$176,000
$178,000
$180,000
March April May
Mexico
$63,091
$64,882
$66,309
$60,000
$63,000
$66,000
$69,000
March April May
Peru
*Million U.S. Dollars
Source: Argentina, Brazil, Colombia, Chile, Mexico and Peru Central Banks, 2019.

33,466.03
29,571.36
33,949.53
27,000
30,000
33,000
36,000
March April May
Argentina
Stock Exchange
95,414.55
96,353.33
97,030.32
94,000
95,000
96,000
97,000
98,000
March April May
Brazil
1,587.74 1,573.64
1,487.00
1,400
1,450
1,500
1,550
1,600
March April May
Colombia
21,098.07
20,896.50
19,922.77
19,200
20,000
20,800
21,600
March April May
Peru
43,281.28
44,597.32
42,749.16
40,500
42,000
43,500
45,000
March April May
Mexico
5,259.41
5,187.10
4,977.09
4,800
5,000
5,200
5,400
March April May
Chile
*IPSA:IND
*MEXBOL:IND
*SPBLPGPT:IND
*MERVAL:IND
*IBOV:IND
*COLCAP:IND
Source: Bloomberg, 2019.

Transparency Index
Argentina
40
(Ranking 85)
Source: Corruption Perception Index by Transparency International (2018)
Brazil
35
(Ranking 105)
Colombia
36
(Ranking 99)
Chile
67
(Ranking 27)
Mexico
28
(Ranking 138)
Peru
35
(Ranking 105)

Country Presidents
Argentina
President: Mauricio Macri
Birth: 8 February 1959
In office since: 10 December 2015
Political Party: Propuesta Republicana
Brazil
President: Jair Bolsonaro
Birth: 21 March 1955
In office since: 1 January 2019
Political Party: PSL
Colombia
President: Iván Duque Márquez
Birth: 1 Agosto 1976
In office since: 7 Agosto 2018
Political Party: Centro Democrático
Chile
President: Sebastián Piñera E.
Birth: 1 December 1949
In office since: 11 March 2018
Political Party: Independent
Mexico
President: Andrés Manuel López O.
Birth: 13 November 1953
In office since: 1 December 2018
Political Party: Morena
Peru
President: Martín Vizcarra
Birth: 22 Marzo 1963
In office since: 23 March 2018
Political Party: Peruanos por el Kambio

Upcoming Elections
Argentina
Presidential Elections: 2019
Term: 4 Years
Congress: 2019 (130 Deputies, 26 Senate)
Governors: 2019 (22 Governors)
Brazil
Term: 4 Years
Colombia
Term: 4 Years
Chile
Term: 4 Years
Mexico
Term: 6 Years
Governors: 2024 (President, 32 Governors)
Peru
Term: 5 Years
Congress: 2021 (130 Congressmen)

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Latin America Update
The United States Should Welcome a Strong, United Latin
America
The 20 countries that make up Latin America are moving rapidly
toward agreement on forming a supranational political and
economic union. The proposed Latinamérica Unida would be
similar in structure to the European Union. The response in the
United States to the plan has been, to use the Spanish
term, exagerada.
Colony Capital Aims to Invest $5 Billion in Latin America
Investment-management firm Colony Capital Inc.CLNY 1.35% said
its newly acquired business in Latin America seeks to invest $5
billion in the region in coming years, much of it in Mexico. Colony
Latam Partners currently manages some $700 million in
investments, and is looking to invest in middle-market companies
with growth potential in Mexico, Colombia, Chile and Peru—the
four countries that make up the Pacific Alliance.
How one company’s deep web of corruption took down
governments across Latin America
Brazil-based Odebrecht is Latin America’s largest construction
company, specializing in large-scale public-works projects.
Odebrecht has won contracts to build mass transit systems in Rio
de Janeiro, Quito, Panama City and Caracas. Why have
prosecutors linked this Brazilian company to so many instances of
corruption? Between 2001-2016, Odebrecht paid $788 million in
bribes — for 100 projects in 12 countries, according to the U.S.
Department of Justice.
Latin America: An ecommerce economy on the rise
Latin American consumers are willing to buy services and digital
goods online, but there is still a high degree of openness to the
idea of digital shopping for physical goods. Almost 40% of
consumers said they would be willing to buy food-takeaways, toys,
and beauty products, using their smartphone. After years of
recession, there is an increasing demand for e-commerce but
customers are highly price conscious.
China in Latin America: partner or predator?
As the Americans see it, Chinese companies are harming Latin
America by investing mostly in the extraction and transportation
of its precious raw materials. This, they say, has led to a greater
dependence on commodities as opposed to US companies which
focus on manufacturing and services. Many in Latin America share
these concerns, but for others the difference between the long-
standing American influence and the growing Chinese role is not
so black and white.
What is the future for renewable energy in Latin America?
Coming in as Latin America’s second largest country, just falling
short of Brazil, Mexico is the fourteenth largest country on the
globe with a land mass of 1,964,375 area sq.km. With the country
already making some headway in renewable resources, and the
construction of Latin America’s largest solar installation well
underway, it came as a shock that among AMLO’s bid to scale back
energy sector privatisation, renewable energy tenders have also
been scrapped.

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Global 2000, The World's Largest Public Companies
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who’s on top, who’s growing and who’s seen better days.
Theranos? Whatever. Healthcare Startups have Raised $15 Billion so far this Year
The torrid pace of healthcare dealmaking in the first six months of 2018 beats any year in a decade, according to an analysis
conducted by Pitchbook for Forbes.
How the CPA Continuing Education Game is Changing
A recent experiment with advisory services personnel of a top-20 CPA firm provided a glimpse of what continuing professional
development might look like in the not-too-distant future.

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Latin America Economic Monitor July 2019

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