IE University, Auxadi and Iberia present 16th annual Report on Spanish Investment in Latin America

IE University presents Report on Spanish Investment in Latin America
Some 76% of Spanish companies will increase their investments in the region over the course of 2024.

 Some 76% of Spanish companies plan to increase their investment in Latin America in 2024. This is one of the main conclusions of the 16th annual Report on Spanish Investment in Latin America, produced by IE University, Auxadi and Iberia, in collaboration with Casa de América. The report, overseen by Juan Carlos Martínez Lázaro, an economist at IE University, confirms that the Latin America maintains its appeal as a destination for Spanish investment.

The report confirms that 82% of Spanish companies expect their turnover in the region to increase in the next  three years. Furthermore, 58% of the large companies and 38% of the SMEs that participated in the report say they will do more business in Latin America than Spain during that period.

"The majority of Spanish companies confirm that they will increase their investment in the region this year, which reflects their confidence in the economic future of Latin America."
Juan Carlos Martínez Lázaro, director of the report and an economist at IE University

"Some 76% percent of the Spanish companies that participated in the report indicate that they will increase their investments in the region this year," explained Juan Carlos Martínez Lázaro, director of the report and an economist at IE University, adding: "If we focus on SMEs, the percentage is even higher, at 80%. Most of these investments will be made through organic growth (60%), while 38% will do so by combining organic growth with acquisitions of other companies."

The report, which was presented today at Madrid’s Casa de América, was attended by León de la Torre Krais, director of the institution; Andrés Meoli, director of Corporate Business Development at IE University; Alfonso Benavides, director of Auxadi, and Victor Moneo, director of Alliances and Institutional Agreements at Iberia.

Spanish business leaders’ perception of the economic outlook for Latin American economies largely reflects the trend in 2023, according to the authors of the report. Mexico, Chile, Colombia, the Dominican Republic and Uruguay have the best ratings. Mexico is once again the leading investment destination, followed by Colombia, Chile, Peru and Brazil. 

"It has been almost 80 years since Spain’s flag carrier, Iberia, made its first flight to Latin America and, since then, it has been a key region, so much so that it now accounts for a significant part of our revenues," said Víctor Moneo, Iberia's Director of Alliances and Strategic Agreements. He added: "But far from being content with this, we have an ambitious plan in place, whereby we are currently deploying record capacity between Europe and Latin America and have made significant investments so that many of these routes are operated with the largest and most advanced aircraft in our fleet."

Alfonso Benavides, a member of Auxadi's Board of Directors, said: "Auxadi has been firmly committed to Latin America, as it is considered a privileged destination for Spanish, American and European investors. The local talent of our offices in Latin America (with subsidiaries in 15 countries considered destination markets), the use of the best technology, the standardization of processes thanks to our ISAE 3402 and ISO 27001 certifications, and the coordination of our accounting, tax and payroll services, from our offices in Madrid and Miami, all make life easier for our clients."

Among the challenges in the region, companies highlight inflation and its impact on sales, as well as political risk and insecurity. Brazil and Argentina have the most complex tax environments for investors, while at the other extreme, countries such as Panama, Paraguay, Uruguay and the Dominican Republic are regarded as the most welcoming. 

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