Opportunities for Latin American companies after COVID-19

[jisansorkar12]

The current coronavirus pandemic has caused, in many sectors, an acceleration of certain processes that were already underway and will not go back. According to Diego Finchelstein, professor at the Business School of the University of San Andrés and researcher at CONICET (National Scientific and Technical Research Council), the clearest case has to do with the use of digital channels, which in many cases are much more agile. This was already a transformation underway that the pandemic forcibly accelerated.

There are some elements that present themselves as an opportunity for Latin advertising database American companies after COVID-19, and in Latin America some companies have begun to identify them. After the slow pace at which China recovered from the epidemic it has been facing since January, some of the main industrial firms in the United States sought to change suppliers and began to look towards Latin America.

Everything indicates that, because China had to stop its production activity for several weeks, the value chains were interrupted. Faced with this shortage or lower flow of goods, several industries decided to change their strategy and diversify the risk by expanding their list of suppliers. And for many American companies, Latin America is a good supplier, says the director of the Colombian-American Chamber, María Claudia Lacouture. She mentions that among the interested US industries are construction, textiles, technology, steel derivatives, automobile parts and semiconductors, among others.

IMF support
The IMF has acted quickly to support member countries through emergency financing. Of the 70 loans approved since the start of the pandemic, totaling USD 25 billion, 17 were allocated to countries in the region, for a total of USD 5.2 billion. In addition, access to the Flexible Credit Line was approved for Chile and Peru, and Colombia's access was renewed. Together with Mexico, the total support provided to the region through the Flexible Credit Line amounts to USD 107 billion.

The IMF stands ready to use its financial capacity, policy advice and training resources to help Latin America and the Caribbean achieve a more vigorous recovery.