Moderate economic growth, stable debt trends, easing inflationary pressures, and gradually relaxing credit conditions will improve credit prospects in Latin American in 2024. The regional credit landscape will be, however, also shaped by challenges derived from high financing costs that reduce fiscal space and corporate margins, the outcome of elections in the United States and several Latin American countries, China’s economic slowdown, environmental risks, and persistent social tensions.
Still, the financial sector is set to benefit from easing financing conditions as banks remain well-capitalized. Investments in infrastructure and energy, particularly in low carbon technologies, will support the region’s sustainability agenda, while the importance of transportation and logistics will resurface on account of supply chain disruptions and the effects of climate change.
Growing interest in digitalization and the integration of GenAI into businesses will create opportunities to enhance efficiency and productivity in various sectors.
Join us as we delve deeper into the factors that will influence Latin America’s credit prospects in 2024.