The business climate in Latin America worsened in the quarter ending in October, falling to -28,2 points due to negative results in the main South American economies, according to a report presented this Monday (11.11.2019).
The data, released quarterly by the Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV) of Brazil and the German institute Ifo, show a worsening of the business environment in the region for the third consecutive quarter.
In the period ending in July, the Economic Climate Indicator (ECI) was at -26,4 points.
"The worsening of the Latin American ICE from July to September is explained by the negative results of the main economies in South America," he said.
"The The biggest drop in ICE was recorded in Argentina, where the indicator varied from 21,2 negative points to 55,4 negative points in the period," the FGV highlighted in a statement.
The Expectations Index (EI) fell from 17,2 points in July to 15,5 in October, while the Current Situation Indicator fell from -61,3 points to -63 points in the period.
En Brazil, the largest economy in Latin America, the ICE decreased from -23,2 to -25 points from July to October, while the IE fell from 50 to 45 points and the ISA remained stable at -75 points.
En Chile and Colombia, ICE went from positive to negative from July to October, while in Ecuador, Mexico and Uruguay there was an improvement in the climate for doing business, although they still have a negative ICE.
Paraguay, the only country with a positive result During the period, it was the best country to do business in Latin America, even though the ICE dropped from 9,9 to 4 points.
According to the report, apart from the increase in social inequality, which is present in the protests in Chile, other issues are specifically aimed at restricting growth and do not reflect indicators of well-being.
Globally, the business climate has worsened from July to October, going from -10,1 to -18,8 points in the period, while the current situation went from -5,4 to -16,4 points and the IE from -14,7 to -21,1 points.
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