This week: An unhealthy dependency? Vol 3, Issue 23
Nationalising lithium, Chile | Dependency on remittances, Mexico | ESG bond issuance | Sustainable aviation fuel transition, LatAm | The DeFi disruption, LatAm | Cancer care, Peru ...
Across Latin America, remittances have provided fiscal breathing space to cash-strapped administrations. Many families would face dire living consequences were it not for money that bread winners send home. In Mexico, remittances grew 27.1% from USD 40.6 billion in 2020 to USD 51.6 billion in 2021, a record high. However, long-term dependence on remittances is not healthy for an economy. Indeed, remittances can reduce labour supply, appreciate real exchange rates and create a culture of dependency that inhibits economic growth.??
Elsewhere…
In Chile, the leftist constitutional convention is pushing to nationalise the lithium mining industry, we speak to sources to understand political and market reaction.
Up in the air, the region’s airlines are looking to transition to more sustainable fuels, it will take time and technological investment to do so.??
Growth in ESG bond issuance has dipped in response to rising interest rates but they remain attractive.
Brazil has debuted the world’s first DeFi exchange-traded fund amidst cybersecurity concerns and a cautious central bank.?
And finally, we turn to Peru where cancer care is to receive greater government funding – welcome news but patient outcomes between public and private sector care remain stark.??
THIS WEEK
Is Mexico becoming too dependent on remittances?
Mexico is one of the world’s top destinations for remittance flows, but overdependence could negatively affect the country’s long-term economic growth.
Chile plans to nationalise lithium mining.?
Chile’s mining minister, Marcela Hernando, has proposed to create a national lithium company by the end of the year. Chile has the largest known reserves, and the mineral is an increasingly important component in global supply chains. What do the markets think?
LatAm's sustainable aviation fuel transition will take time and money.
In April, Latin America’s largest airline group – LATAM – said that it would seek to reach 5% sustainable fuel use by 2030. Other airlines in the region can – and should – follow suit, but a sustainable transition will be technologically difficult for less well capitalised peers.?
ESG bond issuance in LatAm is growing but not fast enough.?
Latin America has been widely admired for its innovation when it comes to ESG issuance but amidst global uncertainties, questions are being raised about returns on investment.
领英推荐
DeFi is challenging LatAm's traditional banking models.
In March, the world’s first exchange traded fund?(“ETF”) dedicated to decentralised finance (“DeFi”) launched on Brazil’s B3 stock exchange. Debate over how central banks will respond to the growth of fintechs across the region continues.?
Is Peru's cancer care good enough???
During the height of the pandemic, there was a significant dip in cancer screenings and treatments in Peru. Our sources say the public healthcare system cannot hope to match the finances and resources of the private system.??
THE TWEET OF THE WEEK!
"It has been 4 years since the re-election of president Nicolás Maduro, it has been 4 years of true struggle for the homeland with great conscience, work, perseverance and loyalty – victories have been achieved and we are on the path of recovery of the country. Let’s continue together towards its consolidation."?–?Cilia Flores.
Inspiring words from?Cilia Flores, the wife of?Venezuelan leader Nicolás Maduro. We did try to work out what ‘victories’ she was referring to though; the four years in question have witnessed her husband presiding over the exodus of some four million Venezuelans, arbitrary detentions, extrajudicial killings, hyperinflation and chronic food shortages – all of which are mysteriously absent from her Twitter page …?
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