A detailed analysis of valuable Latin American companies, including Mexico, reveals economic growth despite slow growth in 2023 due to inflation, monetary policy, and global environment.
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Latin American Companies: 2023 saw slow growth in Latin America as a result of rising inflation, constrained monetary policy, and a generally unfavorable global environment. Brazil and Mexico, however, showed greater economic prospects than anticipated despite the muted economic performance. Their expansion can be ascribed to Mexico’s rising investments and expenditures as well as Brazil’s robust private consumption and agriculture.
Latin America and the Caribbean are predicted to develop steadily at a rate of 2.3% in 2024 and reach 2.5% in 2025, per the World Bank Economic Prospects. The region’s nations show a range of growth potential. For example, Brazil’s economic growth is predicted to moderately slow down to 1.5% in 2024. It is anticipated to return to 2.2% in 2025 when interest rates and inflation both decrease. Mexico, on the other hand, is expected to moderate in 2024 at 2.6%. Mexico’s GDP is predicted to drop to 2.1% in 2025 as a result of low external demand and declining inflation.
In 2024, Argentina is anticipated to recover. It is anticipated to increase steadily by 2.7% until it reaches 3.2% in 2025. Colombia’s economy is expected to grow from 1.2% in 2023 to 1.8% in 2024. It is anticipated that in 2024, Chile and Peru, among other nations in the region, will also have consistent growth. After experiencing a downturn in 2023, Peru is predicted to increase by 3.4% in 2024 because to the nation’s strong mining output. The economies of Central America are predicted to remain robust in 2024. Remittance growth is predicted to propel the region’s growth, which will reach 3.8% in 2025 after reaching 3.7% in 2024.
S&P Market Intelligence reports that Latin America is seeing a spike in foreign investments from various countries, particularly in industries including manufacturing, vital minerals, and renewable energy. This extends beyond the substantial expenditures made in Mexico mostly for automobiles. Global investors in the mining, renewable energy, and hydrocarbon sectors are becoming more interested in the region.
Trade and infrastructural investments are also being drawn to the area. China is having a more significant impact on Latin American nations, according to a January 18 Reuters story. The Belt and Road Initiative and the development of the Chanacy megaport in Peru are two examples of this. By linking South America and Asia, the port hopes to promote trade between the two continents. To counter China’s influence in Latin America, the US and Europe need to spend more in the region. Due to its abundant resources and growing need for investment and funding, Latin America is becoming a worldwide powerhouse.
Among the leading businesses in the Latin American market are Nu Holdings Ltd., Vale S.A., and Petróleo Brasileiro S.A. – Petrobras.
In the petroleum sector, Petróleo Brasileiro S.A. – Petrobras is a leader. The company declared on February 7 that it would be constructing a pilot plant in collaboration with the Senai Institute for Renewable Energy. The plant’s goal is to research the application of hydrogen-derived solar energy. The new facility will grow an already-existing solar energy facility and use it to generate electricity for the electrolysis unit. With a budget of R$90 million, the project should be completed in three years. This joint venture will support the promotion of hydrogen-based energy solutions by Petrobras.
$11.30 billion.
One of the most valuable firms in Latin America is Banco de Chile. With its main office in Santiago, the business is one of Chile’s top providers of financial services. Banco de Chile has a market capitalization of $11.30 billion as of February 9.
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$11.57 billion.
Among the specialty fertilizers that Sociedad Química y Minera de Chile S.A. produces and sells worldwide are potassium nitrate, sodium nitrate, and potassium sulfate. Sociedad Química y Minera de Chile S.A. has a market capitalization of $11.57 billion as of February 9.
$11.59 billion.
Mexico’s CEMEX, S.A.B. de C.V. is a distributor of building supplies. Cement, aggregate, and other building supplies are among its products. As of February 9, CEMEX, S.A.B. de C.V. reported a market capitalization of $11.59 billion.
$12.27 billion
Peru’s Credicorp Ltd. is a provider of financial services. Asset management, wealth management, capital markets, and corporate finance are some of the business sectors in which the corporation operates. As of February 9, Credicorp Ltd. reported a market capitalization of $12.27 billion.
$13.49 billion.
One of the most valuable corporations in Latin America is XP Inc. This financial services organization, which has its headquarters in Sao Paulo, offers services related to investments and financial markets. XP Inc has a market capitalization of $13.49 billion as of February 9.
$13.86 billion
In Latin America, Suzano S.A. is the biggest paper manufacturer. Suzano S.A. has a $13.86 billion market capitalization as of February 9. It comes in at number 15 on our list.
$17.84 billion
The Spanish telecom firm Telefônica has a Brazilian subsidiary called Telefônica Brasil S.A. Telefônica Brasil S.A. has a market capitalization of $17.84 billion as of February 9.
$21.85 billion.
Centrais Elétricas Brasileiras S.A. – Eletrobrás is a Latin American electric utility corporation. The corporation specializes in the production, distribution, and transmission of electricity. The market capitalization of Centrais Elétricas Brasileiras S.A. – Eletrobrás was $21.85 billion as of February 9.
$24.40 billion
Colombia’s largest petroleum corporation is Ecopetrol S.A. The company’s areas of expertise include environmental management, petroleum, gas, and oil. As of February 9, Ecopetrol S.A. had a $24.40 billion market capitalization.
$28.43 billion
One of the most valuable corporations in Latin America is WEG S.A. Among other things, the company specializes in automation, transformers, motors, and generators. WEG S.A. has a $28.43 billion market capitalization as of February 9.
$29.05 billion
Brazil’s Banco Bradesco S.A. is a bank and financial services provider. In addition to financial services, the company provides insurance and property and casualty, life, health, and pension plans. Banco Bradesco S.A. has a $29.05 billion market capitalization as of February 9.
$39.61 billion
On our list, Grupo México, S.A.B. de C.V. is one of the most valuable firms in Latin America. Transportation, infrastructure, and copper production are the three main business divisions that the top mining corporation operates in. Grupo México, S.A.B. de C.V. (OTC:GMBXF) has a $39.61 billion market capitalization as of February 9.
$41.02 billion
Brazilian brewer Ambev S.A. focuses on the manufacturing, marketing, and distribution of drinks. Ambev S.A. has a $41.02 billion market capitalization as of February 9. On our list, it is rated ninth.
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$42.82 billion.
A Spanish international banking business has a subsidiary called Banco Santander (Brasil) S.A. Investment funds, cards, loans, mortgages, and pension plans are among its products. Banco Santander (Brasil) S.A. has a $42.82 billion market capitalization as of February 9.
$45.83 billion.
Seventh on our list of Latin America’s most valuable corporations is Nu Holdings Ltd. Brazil serves as the company’s headquarters for digital banking. Nu Holdings Ltd. has a $45.83 billion market capitalization as of February 9.
$54.27 billion
Of all the Latin American firms, América Móvil, S.A.B. de C.V. is the sixth most valuable. This prominent telco firm, with its headquarters in Mexico, offers both landline and cellular call services. The corporation claims to have a $54.27 billion market capitalization as of February 9.
$57.26 billion
Rio de Janeiro is home to the headquarters of mining corporation Vale S.A. The company’s areas of expertise include iron ore and pellets, nickel, coal, copper, and mineral research. As of February 9, the company’s market value was $57.26 billion.
$67.56 billion
Fourth on our list is Itaú Unibanco Holding S.A. It is among the biggest financial services and banking institutions in Latin America. The company’s market capitalization as of February 9 is $67.56 billion.
$87.05 billion
Third place on our list of the most valuable Latin American firms belongs to MercadoLibre, Inc.. The company’s main office is in Argentina’s Buenos Aires. Retail, buying, payment, and advertising solutions for individuals and corporations are among its offerings. The company’s market capitalization is $87.05 billion as of February 9.
$111.40 billion
Second on our list is Petróleo Brasileiro S.A. – Petrobras. The top oil and gas firm concentrates on low-carbon solutions while specializing in deepwater, energy, and gasoline. With a market capitalization of $111.4 billion as of February 9.
$243.51 billion
Fomento Económico Mexicano, S.A.B. de C.V., is the most valuable company in Latin America. Established in 1890, this corporation is one of Mexico’s leading beverage and retail brands. Its market capitalization as of February 9 is $243.51 billion.
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