Domestic consumption will be the driving force of economic growth in Latin America for another year, say analysts consulted by LBC. According to the International Monetary Fund, the region as a whole should grow by 3 percent this year. As commodity prices are expected to drop somewhat this year, growth will be balanced out by strong domestic demand in the region’s countries.
Nowhere has the story of domestic demand driving growth been stronger than in Brazil. The country’s new middle class has expanded rapidly in the past decade, becoming one of the world’s most important consumer markets. This growth is expected to continue over this next decade, with the Boston Consulting Group estimating it will reach an annual market of around $1.6 trillion by 2020.
With this growth in mind, a new study by Latin Link, a U.S. Media Consulting company, has identified the top growth markets for Latin America’s largest economy this year – trends that are also relevant to many of the region’s other large economies. The trends range from credit to pharmaceuticals, and gyms to wine.