MONTEVIDEO – The biggest challenges facing Latin America are “geopolitical uncertainty,” “technological change” and the “displacement of the center of gravity toward Asia,” experts at the 1st European Investment Forum in Uruguay said in Montevideo on Wednesday.
“We have to take high geopolitical uncertainty into account, which is going to lead to price fluctuations for some primary materials,” said the director of social research and economics at the CAF-Development Bank of Latin American, Christian Daude.
In addition, the expert added that “the region is going to move in a world of uncertainty and this uncertainty also comes along with technological change and displacement of the center of gravity toward Asia.”
For this reason, Daude emphasized the importance for the Western Hemisphere of bringing the Pacific Alliance and the agreement between Mercosur and the European Union to fruition.
Another key point in understanding foreign investment in the zone, he said, is the infrastructure in Latin American countries.
“If one looks at that gap in financing and opportunities that exists in the region, that gap is partly in the infrastructure sector,” he said.
According to Daude, this fact is also brings about “a great opportunity for investment in the sector,” concluding that “challenges are also opportunities.”
These ideas were shared as part of the discussion on the investment climate in Latin America, as well as challenges and opportunities in the region for the European Union.
Also participating in the Montevideo meeting were Inter-American Development Bank integration and grade sector chief economic Christian Volpe and the investment initiative coordinator for the Organization for Economic Cooperation and Development, Monika Sztajerowska, both of whom emphasized the importance of studies about the region and the behavior of companies that want to invest in Latin America.
They emphasized that research, studies and surveys are key elements in gathering data that can be turned into useful advice for companies who opt to invest in the region.
Over the next two days, the forum will gather 720 companies from Latin America and Europe with the aim of strengthening commercial links and creating new strategic alliances spanning the Atlantic.