Will 2024 be The Year of LATAM Markets?

An important advantage of emerging countries (and LATAM) is that they have higher growth ceilings, not only due to macroeconomic factors but also because of an environment more conducive to productivity.

For example, in Europe, the use of genetically modified crops or certain agrochemicals is discouraged, hindering further growth in the primary sector. The same applies to land use and CO2 emissions.

Moreover, in developed countries, the population median age is almost 50 years, which diminishes the ceiling of productivity and growth in macroeconomic terms. This implies greater challenges in scaling the production of goods and services.

Last but not least, commodity prices are another key reason why 2024 could be the year of LATAM markets.

If geopolitical conflicts were the key driver of commodity prices in 2022 and 2023, this year, potentially marked by initial rate cuts and a persistently complex geopolitical landscape, holds promise for primary products.

This year, in particular, the elections in the United States will bring volatility. What could be the result of a second term for Trump or Biden? Or the rise of a dark-horse candidate like Robert F. Kennedy JR? Nobody knows for sure, but regardless of the outcome it will be hugely challenging to manage a country in which half the population is diametrically opposed to the other half.