LatAm: Hidden Opportunities in Plain Sight

研报英文原文证据摘录

LatAm: Hidden Opportunities in Plain Sight

cycle. Supply chains

to global cycles, particularly US rates, China

are shifting toward multipolarity and nearshoring, with Mexico a key beneficiary of manufacturing

demand, and commodity prices. These are

relocation. The region also offers diversified, relatively lower-risk energy supply alongside renewable

compounded by political fragmentation and

and green hydrogen optionality.

policy uncertainty, large informal sectors and

Other Structural Themes. Beyond resources, LatAm offers compelling growth in services and narrow tax bases, high inequality and social

digital economy. High mobile penetration drove fintech adoption and digital payments, particularly pressures that complicate reform agendas,

in Brazil. Mobile usage should also boost datacenter capacity across the region, leveraging and growing climate and energy-transition

its abundant renewable power, high-quality submarine cable connectivity. Demographic trends, risks, reinforcing a low-growth equilibrium

including aging populations and limited public provision, also underpin LT growth in private while keeping a risk premia structurally high

healthcare and related services. across much of the region.

Country Differentiation. LatAm is also highly heterogeneous. Mexico benefits most from

nearshoring but faces risk of overreliance on the US. Brazil offers scale, liquidity, attractive valuation,

with upside to rate normalization and domestic capital rotation, albeit constrained by fiscal

dynamics. Argentina provides the most asymmetric upside, driven by reform momentum though Pedro Baptista * | Equity Analyst

with higher execution risk. Chile and Peru offer a balanced profile with strong institutions and mining +44 (0) 207 029 8351 | pbaptista@jefferies.com