Latin America has an extraordinary opportunity to move towards the industrialization process and be effectively linked with global value creation channels, said Diego Camacho, senior research economist at
Credicorp Capital.
"A great option is emerging, which is associated with the relocation of value chains," Camacho said at a press conference.
According to the senior economist, the world is transitioning from globalization to regionalization of trade, in which Latin America has a great opportunity.
He said workforce in China manufacturing has become more expensive, adding that large companies are uncomfortable with the government telling their plants when to produce or not depending on its health policy, among other things.
Therefore —Camacho said— there is an opportunity to relocate industrial plants.
Moreover, he explained that it is cheaper to ship products from Mexico, Colombia, and Peru to the United States than from China.
For example, Peru could not only export copper but also produce the red metal, as well as value-added copper-based goods.
On the other hand, he remarked that a slowdown in the growth rate of the world economy and global inflation are expected to fall in the coming months.
The Credicorp Capital research analyst mentioned that a further slowdown in global economic activity suggests the risk that asset prices could be affected.
(END) MMG/JJN/RMB/MVB
Published: 6/30/2022