BUSINESS CLIMATE IN LATIN AMERICA REACHES 18-MONTH
HIGH
&
JPMORGAN CONFIRMS EXPANDING ARGENTINE BUSINESS AFTER BARCLAYS
LEAVES,
CONTRARY TO WHAT LEADING ARGENTINE DAILY AND OPPOSITION
PAPER "CLARIN" CLAIMED
Climate
for business in LATIN AMERICA reaches 18-month high; COLOMBIAN economic growth
expected to increase; PERU to campaign for EUROPEAN and ASIAN investment
GRADUAL RECOVERY IN ECONOMIC GROWTH AFTER THE FIRST
TRIMESTER OF 2013, DUE TO THE RECOVERY OF BRAZIL, ARGENTINA, AND COLOMBIA
The
business climate in LATIN AMERICA improved in January, reaching its highest level in 18 months. This is
according to indicators released last Wednesday by the Getulio Vargas
Foundation (FGV), a private economic institute, and the University of Munich.
The
LATIN AMERICAN Economic Climate Indicator reached 5.5 in January, higher than the 5.0 registered in
January 2012.
This
was the highest level since July 2011, when the indicator reached 5.6. By October 2011, the indicator had fallen to
4.4 as a result of the deepening international economic crisis.
According
to the study, the recent improvement in the business climate is principally
attributable to expectations that regional economic growth will continue to
increase.
While
the regional business climate improved in LATIN AMERICA, some countries saw a decline in their indicator
between October 2012 and January 2013. VENEZUELA saw the greatest
decrease in the business climate with its indicator falling from 3.4 to
1.5. ECUADOR and BOLIVIA also saw their indicators decline.
In BRAZIL, the largest economy in the region, the Economic
Climate index fell to 5.9 in January down from 6.1 in October.
PARAGUAY and PERU received the highest evaluations with respect to their
facilitating a favorable climate for businesses. Both received a score of
7.0.
They were followed by
CHILE (6.6),
URUGUAY (6.3),
BRAZIL
(5.9),
MEXICO (5.7),
BOLIVIA (5.4),
COLOMBIA (5.3), and
ARGENTINA (5.2).
VENEZUELA (1.5) and ECUADOR (4.0) received the lowest score.
The
FGV and University of Munich data on LATIN AMERICA’S business climate is
released every trimester. It calculates the Economic Climate Indicator
based on the average evaluation of 138 specialists in 18 countries.
COLOMBIAN
ECONOMIC GROWTH EXPECTED TO INCREASE
Juan
Manuel Ruiz, chief economist at BBVA Research’s LATIN AMERICA division,
asserts that the COLOMBIAN economy will recover this year thanks to an improvement in the
mining and petroleum sectors. Even more importantly, increased investment in
civil works could result in gross domestic product (GDP) growth of over 4 percent.
‘There
are preliminary data that suggest [COLOMBIA] is recovering its economic
dynamism,’ Ruiz asserted.
Additionally,
the Central Bank recently stated that COLOMBIA’S 2012 growth did not reach its
potential. 2012 growth numbers are still unknown, but the Bank estimates
that the economy grew by approximately 3.7 percent.
Failure
to maximise economic output in 2012 has created greater optimism for 2013
growth which is currently predicted to reach 4 percent.
For
2014, the BBVA estimates that COLOMBIA could maintain dynamic economic growth,
potentially reaching growth levels of 5 percent.
GRADUAL RECOVERY IN ECONOMIC GROWTH AFTER THE FIRST
TRIMESTER OF 2013, DUE TO THE RECOVERY OF BRAZIL, ARGENTINA, AND COLOMBIA
With
respect to regional growth in LATIN AMERICA, the BBVA projects growth of 3.6
percent in 2013, up from 2.8 percent in 2012. For 2014, the projection is
even more optimistic: 3.7 percent.
‘There
will be a gradual recovery in economic growth after the
first trimester of 2013, due to the recovery of BRAZIL, ARGENTINA, and COLOMBIA.
This growth will continue on the back of strong internal demand and high
primary resource prices,’ according to the BBVA report.
PERU
TO CAMPAIGN FOR EUROPEAN AND ASIAN INVESTMENT
PERU
will solicit investment from EUROPE and ASIA for projects that are currently
being planned for 2013, according to Javier Illescas, director of the Agency for the
Promotion of Private Investment (Proinversión).
Illescas
specified that the investment promotion campaign will travel to London (UNITED
KINGDOM), Frankfurt (GERMANY), Dubai (UNITED ARAB EMIRATES), Beijing (CHINA),
Seoul (SOUTH KOREA), Tokyo (JAPAN), and Toronto (CANADA).
According
to the director, these countries possess strategically-important companies that specialise
in construction and infrastructure.
Illescas
stated that PERU will be developing many new projects this year. Among
these will be the construction of a new metro line in Lima, a major road to
cross the Andes, and the Chinchero international airport in Cuzco.
In
addition to EUROPE and ASIA, the Proinversión campaign intends to increase its activities in AUSTRALIA and NEW
ZEALAND, where it hopes to attract businesses interested in investing in PERU.
JPMORGAN CONFIRMS EXPANDING ARGENTINE BUSINESS AFTER BARCLAYS
LEAVES,
CONTRARY TO WHAT LEADING ARGENTINE DAILY AND OPPOSITION
PAPER "CLARIN" CLAIMED.
By Camila Russo
JPMorgan Chase & Co. (JPM) is expanding its
business in ARGENTINA as the country remains a ``key'' market
in the region, the bank’s senior country officer said.
JPMorgan, the largest U.S. bank, is
leasing an additional three floors in its headquarters in Buenos Aires and
hiring about 15 people this year, Facundo Gomez Minujin said. The New
York-based bank has operated its local investment unit in ARGENTINA since 1985,
according to its website.
‘‘ARGENTINA remains a key element of
our JPMorgan franchise in LATIN AMERICA,” Gomez Minujin wrote in an e-mail. “In
the last 12 months we have increased our headcount.”
JPMorgan is expanding in SOUTH
AMERICA’S second-largest economy even as competitors have cut staff and closed
divisions amid a tightening of currency controls and financial oversight by
President Cristina Fernandez de Kirchner’s government. Barclays Plc (BARC) closed its wealth management
office in Buenos Aires in January 2012 “for strategic reasons” while Exotix, a
brokerage, last year transferred some staff to New York and London
due to regulations.
Gomez Minujin denied a report published today from Buenos
Aires-based newspaper Clarin that the bank was leaving the country by the end
of the month.
“We’re maintaining our presence ARGENTINA
just like we always have,” he said in a telephone interview.
No comments:
Post a Comment