While Latin America as a whole has struggled to extend the growth and productivity gains it made in the early 2010s, it still remains an appealing and dynamic region to do business. However, the onset of Covid-19 in early 2020 added another layer of complexity to ongoing efforts to improve business environments, from Baja California to Buenos Aires.
Although government responses in the region varied in severity, the one constant is the poor near-term economic outlook. The latest figures from the IMF published in June paint a sobering picture for the Latin America whose economies are set to shrink by 9.4% in 2020, the sharpest contraction of any region of the world aside from the Euro Area. However, a 2021 recovery is set to be robust and growth figures are predicted to be above those of other dynamic regions such as Sub-Saharan Africa. In addition, it could be seen as an opportunity to make positive structural changes to the region’s economies, which have embraced innovative new practices in just a matter of months.
Respondents to the Latin America Covid-19 CEO Survey indicated their approval of micro- and macroeconomic paradigm shifts which could improve economic conditions for businesses and result in more favourable working conditions for employees. In this in-depth analysis we explore how these trends in remote working, supply chains, and digitalisation initiatives are set to shape the region’s economies going forward, contextualising them in long term trends seen in the wider global economy.