US investors withdrawing from Latin America’s three largest economies as populist rulers spark concern
Post available in: 
English
According to a recent report from the Department of the Treasury, investors from the United States are rapidly fleeing the once most promising and three largest countries of Latin America (Brazil, Mexico and Argentina).A total of US $ 16,393 million of US investments pulled out of Brazil, US $ 11,531 million left Mexico and US $ 6,106 have departed Argentina in February 2021, compared to the same month of 2020.
But in relative terms, it means 25% of the US investments in Argentina chose to leave, as did 10% of the capital invested in Brazil and only 7% of what had been placed in Mexico chose to seek other destinations.
Most of the “swallow capitals”, as they are called in Latin America, correspond to government bonds and corporate securities. According to the official report, Mexican stocks, bonds, and corporate securities in the hands of US capitalists totalled 152,802 million dollars. In the case of Mexico, 3% of the flows correspond to corporate bonds and 9% to government papers.
Analyst agrees that the peculiar ruling styles of Brazil’s Jair Bolsonaro and Mexico’s Andrés López Obrador, who are regarded as qualified as “populist” or even “extremist” are other elements that often scare American capitalists.
The same applied to Russia’s Vladimir Putin. Not surprisingly, Russia placed fourth in the withdrawal report followed by Hong Kong and the Bahamas.
About Gateway to South America
Established in 2006, Gateway to South America began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in Argentina, Brazil, Chile, Paraguay, Peru, and Uruguay. If you enjoy reading our news site, please share it on your social media!
Post available in: English
