Sunday , March 26 2023

Latibex Analysis in Mexico and AL


Last Friday in Madrid, the traditional Spanish stock exchanges and markets (BME) ended their annual meeting, bringing Latin American stock markets (Latibex) to Latin American companies that want to take part in the Iberian market and, of course, in the European Union (EU)

Latibex is precisely this option, as it offers the capitalization and financing value of Latin American corporations in euros.

Although it's easy to say that twenty years have passed since its introduction, it has added and added to each edition its efforts to combine this business platform despite the eight-year crisis in Spain and other industrialized countries. and more advanced.

We must reward the Latin American region while the United States and Europe are in a downturn. The region turned out to be under the influence of low risk factors (given its low exposure) and, in addition to increasing throughout the period, it consolidated as an essential basis for economic countries such as Spain, due to its presence in Latin America.

The current international panorama, not less blurred, but with favorable growth rates (with a few exceptions, such as Argentina and Venezuela, as well as Germany's slowdown), has several challenges and is much more geopolitical than geo-economic, although the price of oil and raising interest rates in the United States are two important variables.

Latibex met with representatives from several Mexican companies: Cemex, Banorte, Grupo Salinas, Grupo Financiero Inbursa, Grupo Hotelero Santa Fe, BBVA Bancomer and Bolsa Mexicana de Valores.

According to the words of the Spanish Securities Exchange's president, Antonio Zoido, the balance of these two decades in Latin America is positive: "GDP has doubled to over 6 billion trillion dollars


Equally important is the fact that foreign direct investment in the region is multiplied by three; of the total, 41% – from Europe and 1/3 – from Spain.

"Spain is the first European investor and the second largest in Latin America, but it has also become a favorite destination among Ibero-American investors," said Zoido.

If we are talking about trade, the balance is equally favorable to what Fuentes described in his time as the "most visible region and more" multilateral, local companies that have expanded their activities in several countries in the region to achieve a multinational presence.

But if there is something patent in the Iberian and American sparkling Spain, the fact that in the last two decades the Middle Range in Latin America has started an interesting period of expansion and is still there today.

The middle classes have intensified: at least 80 million people have been left to poverty, although 25% of the population are still imprisoned there.

The greater the access to education for children, adolescents and young people, the more likely it is to overcome the atavistic generation of famine and misery.


In Latin America, there are still challenges that the Spanish literally market president does not agree with: 1) Growth is less than expected and lower than the average of the last decade of the 20th century. 2) Exports relative to the Asian zone are relatively durable; 3) regional integration is inadequate and infrastructure, logistics, education or health continue to face huge challenges in reducing social inequalities.

How to complete the region in 2018? Average GDP is expected to range from 1% to 2%, with several indicators being distorted: political change in Mexico and Brazil and the economic disaster in Argentina and Venezuela. In Mexico, the forum concluded that there was "optimism with caution.


* Director of Conexin Hispanoamérica, economic journalism economist and international writer

Source link