Iberia Sales Director for Latin America, Víctor Moneo, has described as "excellent news" that Spanish companies increase their investment in the Latin American region since the airline plans to grow in destinations such as Colombia, Uruguay, Ecuador, Peru, Mexico and Brazil.
Iberia will grow in Colombia, Uruguay, Ecuador, Peru, Mexico and Brazil
And it is that 76% of large Spanish companies and 68% of SMEs will increase their investment in Latin America during 2019, with Colombia, Chile, Panama, Peru, Uruguay and Mexico being the countries in which Spanish investors place better expectations in 2019
This is clear from the XII report 'Panorama of Spanish investment in Ibero-America', prepared by IE University in collaboration with Llorente & Cuenca and Iberia, which indicates that stability and moderate optimism will guide Spanish companies to invest in Ibero-America this year.
After 2017 and 2018, in which Ibero-American economies have managed important uncertainties, such as the trade agreement between the US and Mexico and elections in Brazil, Colombia and Mexico, among others, if analyzed by countries, only investments in Venezuela would fall. , while they would remain in Argentina, Guatemala, Honduras, Nicaragua and Cuba, an increase in the rest.
Iberia, which has been operating in the region for 70 years with strong commercial ties, has its main international market in Latin America, where it covers 18 destinations in 16 countries. "Latin America is our main market and, over these years, we have managed to consolidate the Madrid airport as the gateway to the old continent."
Beyond Madrid, Iberia offers more than 100 destinations in Europe to which it has added new markets such as Shanghai (China), and Tokyo (Japan) with a vocation also to build bridges between Latin America and Asia, to also favor tourism between both regions and that Spain is a point of connection within Europe.
Although tourism in Latin America has grown to 3% in 2018, one of the most moderate rates, this industry is going through a good time so this activity continues to be an opportunity to take advantage of both sides of the Atlantic with greater diversification of the offer.
"In Iberia we are very grateful to Ibero-America because it has helped us a lot to grow and has established us as the best option to fly on both sides of the Atlantic.The best way we can think of to correspond is to continue investing in the region," says. Moneo.
THE REGION COMPETES WITH ASIA AND REST OF EUROPE IN INVESTMENTS
Of the 106 companies participating in the study, 76% expect their turnover in Ibero-America to continue increasing in the next three years, a figure 8% lower than that registered in the 2018 report. 86% of SMEs, due to their part, expects to increase its turnover in Latin America in the next three years.
Small and medium-sized Spanish companies, due to their size and capabilities, will continue to focus on the European Union and Latin America as the main expansion and investment markets.
However, the importance of Ibero-America as a destination for Spanish investments increasingly competes with other destinations such as Asia, the rest of Europe or even Africa when defining future investments.
The latest report highlights that more and more companies, especially large companies, see medium-term limits in the Ibero-American market, while the possibility of higher billing increases in the United States, Canada or Asia.
BEST VALUED DESTINATIONS
"In 2019, economic activity in Ibero-America will continue to recover, despite the risks that have hovered over the performance of the world economy for several quarters," the report explains.
In terms of destinations, the economies best valued by Spanish companies present in Latin America are Colombia, whose macroeconomic environment for 2019 is rated with a score of 3.89 out of 5, and Chile, with an assessment of 3.88, followed by Panama (3.68) and Peru (3.66).
The latter country has dropped from first to fourth place in the classification, although it has been in leadership positions for more than a decade, having overcome all the obstacles it has encountered in order to consolidate itself as a safe destination for Spanish investment. Uruguay ranks fifth, with 3.51 and Mexico the sixth, with 3.46.
COMMERCIAL WAR AND TYPES OF INTEREST
According to the report, the recovery could be more intense than expected if the ongoing negotiations between the United States and China deactivated the trade war between the two powers and if interest rates in the United States were close to their neutral level, as suggested president of the FED recently.
The professor of IE Business School, Juan Carlos Martinez, said that the measures implemented by the new administrations of the two largest economies in the region will deserve special attention.
Thus, while Brazil expects a very prone environment for the arrival of foreign capital, in Mexico there are some reservations about the treatment that the Government of López Obrador could give to certain foreign investments.
For his part, the founding partner and president of Llorente & Cuenca, José Antonio Llorente, has indicated that the latest trends of expansion of Spanish investors are the reflection of a year of important movements and key changes in the political landscape of Latin America that "they have certainly brought uncertainty."
"These data only confirm that stability in Latin America is essential for the attraction of foreign investments, there is still a lot of expansion in Ibero-America and a lot of territories to explore for Spanish companies", he emphasized.
Source: El Periodico de Mexico