A Change

In the last two years, public investment in infrastructure has decreased in most Latin American countries due to tax cuts, slowing economies, and delays stemming from corruption scandals. Faced with this reality, governments have strengthened private investment through different public-private partnership (PPP) models.

This effort has resulted in new roads, airports, port terminals and even social infrastructure developed via PPPs, but the investment gap is still considerable.

Most regional countries fare very poorly in the Global Competitiveness Report by World Economic Forum (WEF), and as a whole, only Sub-Saharan Africa invests less in infrastructure as a percentage of GDP.

But this reality of Latin American infrastructure also opens up a wide range of investment and business opportunities for international, regional and local companies in the industry.

The key issue is clarity in the political arena. In addition to the second round of voting that will determine Chile's new president on December 17, Colombia (May 2018), Mexico (July 2018) and Brazil (October 2018) have general elections next year.

Despite uncertainty, attractive investment programs remain in place in the major countries, with a variety of projects under development or planned, and this, coupled with growing economies in most of Latin America means a new optimism is in the air.


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