Photo: Business in Latin America
Ninety-five percent of the big Spanish companies intend to increase their sales in Latin America over the next three years, while only half of them expect to see increased sales in North America or Eastern Europe.
And 81 percent of the 38 publicly listed companies surveyed for IE Business School’s sixth “Outlook for Spanish Investment in Latin America” believe that in 2016 they will be making more sales in Latin America than in Spain.
The report also forecasts increasing or stable Spanish investments throughout the region, but the preferred destinations will be Brazil, Mexico, Colombia, Chile and Peru, the latter of which has been a surprise standout in recent years.
The main strength the big Spanish firms see in Latin America is the region’s thriving domestic market, as well as specific advantages such as the competitiveness of the Mexican economy and the training of Colombian and Chilean professionals.
With regard to the risks in the region, the firms cite crime in Colombia and Mexico and challenges to property rights in Argentina, Bolivia, Ecuador and Venezuela, while at the same time emphasizing that Peru, Uruguay, Chile and Panama are the safest markets in all senses.
The director of the report, IE Business School professor Juan Carlos Martinez Lazaro, said that small and medium-sized firms will continue to consolidate their position in this “second wave” of Spanish investment in Latin America.