Latin America must remain among the plans of companies wanting to grow. This is one of the conclusions reached during the webinar organized by the Exporters Club to address the challenges of SMEs in the new economic context.
According to data presented during the webinar, Latin America continues to generate interest in Spanish SMEs. Currently, it is the second region in the world that receives the largest amount of Spanish investment. “This was the case in 2020, as it ranked behind the European Union countries and ahead of the United States,” confirms professor of applied economics at ICADE and expert in Latin American economics, Alfredo Arahwitz.
Division between six countries
Basically, Spanish investment in Latin America is concentrated in a group of six countries. Among them are Brazil, Mexico, Argentina, Chile, Peru and Colombia. According to Arahuetes, “90% of the net inflows and their total and the stock of direct investment converge in this group.” The remaining 10% of the investment is concentrated in Uruguay, Panama, the Dominican Republic, Ecuador, Costa Rica and Cuba.
During the webinar, the Minister of State for Spain’s Global Affairs, Manuel Moniz, specified that the Spanish investment in Latin American countries amounts to 140 billion euros, according to the latest available data. Moniz emphasized that “in the past fifteen years,” the number of trade exchanges has doubled, and the number of exporting companies has doubled by four.
The meeting also served to show how the Covid-19 crisis has affected Latin America. Muñiz noted that in recent years Spanish companies have been a “key” to achieving development in Latin America. He said, “Spanish investment and exports have contributed to improving infrastructure and the quality of life in destination countries, as well as to the advancement of digitalization in countries that have lagged behind in the technological field.”
However, he also indicated that Covid-19 was causing an economic slowdown, which would increase the risk of suffering from a debt crisis. He advocates the need for global initiatives that allow Spanish companies to develop there more safely.