Latin America to dodge weak U.S. economy
Latin America and the Caribbean could dodge U.S. economic weakness because of the diversity of its exports and bilateral trade agreements, the regional head of package delivery giant FedEx Corp said on Tuesday.
FedEx is betting on Latin America because the region is growing at its fastest pace in three decades and because of solid economic fundamentals of regional powerhouses Mexico and Brazil.
The firm is also closely watching big commodity producers Peru, Chile and Argentina at a time when metal, oil and grain prices are at record highs.
Some analysts believe a U.S. recession would hit demand for commodities and other products from Latin America. Juan Cento, FedEx’s president for Latin America and the Caribbean, disagrees.
“A weaker U.S. economy is not paralyzing the economies of Latin America,” Cento told the Reuters Latin America Investment Summit in a telephone interview from Miami.
FedEx, which employs 3,400 workers in 50 countries and territories in Latin America and the Caribbean, is seen as an indicator of economic health, because a fall in demand for its services is a symptom of a weak economy.
“We are noticing that the change in dynamics of markets, in which exports are being pushed to other areas, has brought a new stability and position of strength (to regional products) in the global economy,” Cento added.
Trade alliances with China, other eastern countries and Europe will help avoid a slowdown in demand for goods and commodities produced in Latin America, he said.
Latin America and the Caribbean could dodge U.S. economic weakness because of the diversity of its exports and bilateral trade agreements, the regional head of package delivery giant FedEx Corp said on Tuesday.
FedEx is betting on Latin America because the region is growing at its fastest pace in three decades and because of solid economic fundamentals of regional powerhouses Mexico and Brazil.
The firm is also closely watching big commodity producers Peru, Chile and Argentina at a time when metal, oil and grain prices are at record highs.
Some analysts believe a U.S. recession would hit demand for commodities and other products from Latin America. Juan Cento, FedEx’s president for Latin America and the Caribbean, disagrees.
“A weaker U.S. economy is not paralyzing the economies of Latin America,” Cento told the Reuters Latin America Investment Summit in a telephone interview from Miami.
FedEx, which employs 3,400 workers in 50 countries and territories in Latin America and the Caribbean, is seen as an indicator of economic health, because a fall in demand for its services is a symptom of a weak economy.
“We are noticing that the change in dynamics of markets, in which exports are being pushed to other areas, has brought a new stability and position of strength (to regional products) in the global economy,” Cento added.
Trade alliances with China, other eastern countries and Europe will help avoid a slowdown in demand for goods and commodities produced in Latin America, he said.
