APLA ’24: Latin America poised for strategic growth amid global shifts – economist

CARTAGENA, Colombia (ICIS)–Latin America stands at a crucial turning point as global economic and political dynamics shift, with significant opportunities in energy, food security and technological advancement, an economist said on Tuesday.

Martin Redrado, director at the Buenos Aires-based Fundacion Capital, said Latin America is uniquely positioned to benefit from changing global trade patterns, particularly as the world moves from a rules-based system to a more transactional approach.

The economist was speaking to delegates at the annual meeting of the Latin American Petrochemical and Chemical Association (APLA).

Mexico has emerged as a primary beneficiary of nearshoring initiatives, while South American nations including Colombia, Brazil, Argentina and Chile are increasingly attracting international attention.

The region’s energy sector is projected to play a vital role in global security, with forecasts indicating Latin America will produce 11 million barrels of oil daily by 2030, representing 25% of global production, said Redrado.

Brazil is expected to double its offshore pre-salt oil production, while Argentina’s Vaca Muerta development promises significant gas production potential.

The economist said regarding food security, Latin America’s position appeared equally strong, with the region already controlling half of global corn exports and 60% of soybean exports, with Brazil leading as a major meat exporter.

“Latin American will have a central role to play in food security. Today the world has 8 billion inhabitants, and it is estimated that by 2030 around 2.3 billion of those 8 billion will become middle class,” said Redrado.

“The middle class consumes more protein, and clearly Latin American, with half of the total corn exports in the world and 60% of soybean exports, is well placed to cater for that demand.”

Technological integration, particularly artificial intelligence, is reshaping traditional industries, said Redrado, noting AI applications in agricultural soil analysis, weather forecasting, and pest control are enhancing productivity.

Similar advances, he concluded are being made in energy sector efficiency and construction monitoring.

INFRASTRUCTURE STILL BEHIND
However, infrastructure remains a significant challenge, and Redrado said Latin America must improve both physical and digital connectivity, including enhanced petrochemical infrastructure and better regional integration.

The push for private sector participation in infrastructure development is growing, with negotiations ongoing for increased US involvement under the Trump administration.

Summing up, Redrado said that as global tensions persist in Europe and the Middle East, Latin America’s relative stability and strategic distance from these conflicts, combined with existing free trade agreements with the US, position the region favorably for sustainable economic growth and development.

The 44th APLA annual meeting takes place 18-21 November in Cartagena, Colombia.

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