Latin American non-financial corporates significantly reduced capex in 2020 as the financial effects of the coronavirus pandemic motivated issuers to boost liquidity. Aggregate capex across roughly 200 cross-border issuers in the region declined 26% to $84.8 billion, as revenue fell 15% to $870.2 billion. Aggregate capex/revenue fell to 9.7% from 11.2% illustrating the conservative stance of issuers at the pandemic’s onset. However, these pandemic-driven reductions are reversing in 2021, with voluntary moratoriums on growth projects being lifted. The reversal is proceeding despite mixed vaccination progress (ranging between 30% in Peru and 74% in Chile as of Sept. 25) and pockets of political uncertainty across the region. Economic growth, improved cash flow, better balance sheets and capital market access support increased […]