Investment latest publications
The recovery of growth in Latin America has not materialized for several quarters and the return to average growth rates above 2% has been consistently delayed. The second quarter of 2019 was no exception.
Yesterday, the INEGI published preliminary growth data for the second quarter. As we know, this showed growth of 0.1% compared with the previous quarter.
‘Search for yield’ has emerged as the predominant driver of funds flows in the current low yield backdrop marked by a complicated global macro outlook and supportive central banks.
The Spanish economy is showing enviable resistance in the face of an internal and external environment surrounded by uncertainty. When GDP data is published for the second quarter, it is highly likely that growth will have remained between 2% and 3% year-on-year.
Growth for 2019 and 2020 would stand at approximately 1.7%YoY, 2 pp above that previously estimated in both cases. In 2019, it is expected that the slowdown in consumption will be offset by the increase observed in investment, whilst next year, improved exports should continue against a backdrop of recovery of global demand
Over the last few weeks we have been reviewing our global and local economic outlook scenario and the year economic performance has been especially challenging due to the change in international conditions, mainly.
Lower net investment in real estate and high depreciation rates of intangibles account for most of the slowdown in net business investment over the last 30 years.
June 7, 2019
Mexico | Underinvestment in E&P prompts Fitch to downgrade Pemex’s bonds to junk status
Fitch downgrades Pemex’s bonds to junk status as the company keeps facing serious underinvestment in E&P because of its relatively high fiscal burden.