Signs of growth but Latin America still a ‘work in progress’
By Daniel Murray, global head of research, EFG Asset Management, 22 Mar 18
After a multi-year slowdown, 2017 was the year in which Latin America’s growth resumed. But each country is still, very much, its own economic and investment story.
The acquittal of Brazilian president Michel Temer (and his predecessor Dilma Rousseff) on charges of soliciting illegal campaign donations could have proved an important step in demonstrating that the economy has turned a corner in its fight against corruption – had it not been followed by new corruption allegations.
Only two economies in Latin America – Chile and Uruguay – score above 50 on Transparency International’s Corruption Perceptions Index.
A level below 50 indicates corruption is a serious impediment to growth.
Chile, Brazil and Mexico have all slipped back in the rankings in recent years. Argentina is one of the few countries in the region to have made strong gains recently, reflecting the implementation of Macri’s policies.
On tackling corruption and putting growth on a firmer footing, Latin America remains very much work-in-progress.
