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A View from Latin America

Alberto Ramos, co-head of Latin America research in our Global Investment Research Division, talks about investment in Brazil, commodities, China's impact in the region, and more.

[In Latin America] the onus is still on the policy-makers to rise to the occasion and to adopt deep-cutting structural reforms that could increase productivity growth and potential GDP growth in the near future.

          - Alberto Ramos, Co-Head of Latin America Research, Goldman Sachs

 

About Alberto Ramos

  • Albert Ramos

    Alberto Ramos

    Managing Director, Co-Head of Latin America Research, Global Investment Research Division

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Insights on Latin America from Alberto Ramos

  • This definitely could be the Latin American decade—if policy-makers seize the opportunity to adopt longstanding structural reforms geared to increase productivity, diversify the economic base, and boost real GDP growth.
     
  • Second-generation reforms that could help unlock the growth potential in Latin American economies include reforms in education, labor markets, and trade, but also institutional reforms aimed at increasing the efficiency of the public sector and at attracting domestic and foreign investment.
     
  • Brazil has emerged as an important power in the region and has in recent years attracted significant portfolio and direct investment flows. But the large capital inflows added pressure on the exchange rate, which has reduced the overall competitiveness of Brazil's non-commodity exporters. 
     
  • China's emergence as a global economic and financial powerhouse and major consumer of commodities has admittedly levered the economic performance of Latin America. At the same time, China is now a formidable competitor in the export of manufacturing goods, particularly for Mexico.
     
  • Since Latin America is commodity rich (given its large endowment of natural resources), it experiences a significant positive "wealth shock" when commodity prices rise. The macro resilience accumulated in recent years has better prepared the region to withstand negative price shocks, and so a downward correction of commodity prices should not in itself trigger disruptive macroeconomic dynamics.