Latin America: Key Trends for 2025 By Kalglas’ President Israel Broide

Latin America is a privileged region full of challenges in a world of opportunities. Through this article, I want to share an analysis of the key trends shaping its economic landscape in 2025. The region stands at a crossroads with opportunities and challenges that will define its immediate future. From energy transition and digitalization to investment in the continent, all under the influence of a complex geopolitical reality.

Opportunities and Challenges

Latin America is a highly unequal region with structural infrastructure problems. However, it also shines a light on a new era of opportunities, reinforcing its role as a significant global player. Despite moderate economic growth, the region is attracting greater investments which creates a favorable scenario for sustainable development and modernization.

Energy Transition

The region holds approximately 50-60% of the world's essential minerals and resources needed for renewable energy, positioning it as a crucial player in the global climate balance. It is no coincidence that Latin America is at the forefront of a green future. However, poor infrastructure is a chronic obstacle limiting its potential. For instance, despite a high potential for clean energy generation, electrical grids need modernization. Likewise, digitalization has advanced significantly, even in remote areas, but the transportation network is not keeping up, creating logistical bottlenecks.

Events such as the Guyana Energy Conference and Supply Chain Expo in Guyana highlight the importance of integrating renewable energy solutions and building a workforce prepared for the future. Collaboration between industry leaders and policymakers is key to addressing these challenges.

Digitalization and Productivity

Digitalization continues to be an essential driver of development in Latin America. The adoption of Artificial Intelligence (AI) is revolutionizing sectors such as education, where countries like Chile, Brazil, and Uruguay are leading the integration of these technologies. However, Latin America productivity growth remains lower compared to the rest of the world.

To tackle this challenge, it is crucial to integrate AI into industry, but also to prepare the human capital needed to implement it. Technology alone is not enough; people must be trained to adopt and leverage it. Companies have a crucial role in this education, ensuring that AI complements rather than replaces human talent.

A Long-Term Vision

One of the main challenges facing the region is the lack of a long-term vision among governments. It is necessary to adopt a geopolitical approach and work together to position Latin America in global conversation. Regional cooperation and the implementation of sustainable strategies will be key to harnessing the economic and social potential of the region.

Kalglas International Inc.'s Commitment

At Kalglas International Inc., we recognize that Latin America is in a privileged position to take advantage of these trends and overcome present challenges. Our commitment is to contribute to the sustainable development of the region by supporting initiatives that promote innovation and sustainability.

The future of Latin America is full of possibilities. With a combination of investment, technology, and skilled human capital, the region can establish itself as a global leader in the coming years.

Source: Symposium of the Council of the Americas, held in Miami, FL, in October 2024.