Business Competitiveness To Be Key For Discriminating Investors
BMI View: The World Economic Forum's recently-released Global Competitiveness Report reaffirms many of the key themes we have noted regarding the business environment in Latin America, including rising security risks in the narcotics trafficking corridors, the deteriorating climate for the private sector in political hotspots such as Venezuela , and the mixed outlook for other major countries in the region.
The World Economic Forum (WEF) , released the latest version of its Global Competitiveness Report early in September. The 2013-14 publication , which measures economic competitiveness across a wide range of metrics, broadly supports many of our own views which we have long highlighted in the region. These include the rising importan ce of security in the northern countries of Central America, the significant deterioration in competitiveness among countries with poor macroeconomic governance and populist administrations such as Venezuela, and the mixed outlook for several of the region's largest economies, including Brazil, Argentina, and Colombia.
In particular, we note that in the absence of high commodity prices and strong demand from for Latin American goods exports from China, economic competition is fast becoming the key criteria to determine economic outlook in the region. We believe that Mexico and Colombia, with their favourable business environments and substantial growth opportunities, are among the region's most attractive markets. Meanwhile, we reiterate our relatively less positive view on Brazil, which suffers from extensive government involvement and less accommodating approach to the private sector.
|WEF Rankings Support BMI's Long-Held Views|
|Latin America - 2013-14 WEF Rankings (Y-Axis) Versus BMI Business Environment Ratings (X-Axis)|