Bloomberg Line – The week was framed by the meeting between the President of the United States, Joe Biden, and his Chinese counterpart, Xi Jinping, to give a second wind to their bilateral relationship in the context of geopolitical and economic tensions. The meeting was held within the framework of the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco (USA).
What impact will the new rapprochement between the United States and China have on Latin America?
The United States and China are seeking to mend their tense and fractured relationship as they struggle for influence in Latin America, a key region for raw materials exports, and amid political shifts in several of the largest regional economies. It is playing its own geopolitical chess.
Latin America and the Caribbean play a major role in the rise of the Asian giant’s influence in the regionSo much so that trade has increased in value 35-fold in this century, rising from US$14,000,000 in 2000 to US$500,000,000 in 2022, according to a recent report by the Economic Commission for Latin America and the Caribbean.
An example of the impact of this trade flow is that “1 in every $5 of value added generated in Latin America and the Caribbean is exported to China in the sectors of agriculture, livestock, fishing, and in the case of mining products,” he says. Sibal.
The United States and China agreed to enhance dialogue in aspects such as counter-narcotics, re-establishing high-level military exchanges or establishing a working group on artificial intelligence, but they also outlined their differences. Especially with regard to Chinese territorial ambitions in Taiwan.
Lack of trust and protectionism: key risks for Latin America in 2024
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In the past three years, Latin America has had to endure the economic and social shocks of the COVID-19 pandemic, Russia’s war in Ukraine, and the recent conflict that erupted in the Middle East, with Israel and Palestine making headlines.
These scenarios, which changed inflation and slowed economic growth, along with country-specific social crises, It is crucial for the immediate future of the regionrepresenting an increasingly detailed risk map that will impact the business and investments made in the future.
The key exposures identified that have an impact on the region run across political and institutional mistrust, risk management, climate change and geopolitical realignment, which are condensed in a global risk outlook by consultancy Control Risks, shared with Bloomberg Linea for Latin America. .
The technology talent shortage is alarming in Latin America and means millions of jobs
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The demand for technology talent around the world, in the midst of an accelerating digital transformation and with the “boom” of artificial intelligence, has become a spark for the crisis that Latin America and the world in general are experiencing: the human resources deficit. Human talent specialized in technology.
The calculations, although distant, reflect one concern. For example, Korn Ferry, a global human resources consulting firm, recently mentioned this By 2030, the world will have a global talent shortage of 85 million jobswhich directly hits the technology sector.
As for Latin America, a study conducted by the international consulting firm IDC estimated that by 2028, 2.5 million new ICT specialists will be needed, amid the digital expansion of companies and governments.
Remittances in Latin America advance at record pace in 2023: Which countries receive the most remittances?
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Remittances received by countries in Latin America and the Caribbean It could reach a record high of US$155.908 million in 2023Which means a 9.5% increase compared to 2022, according to new year-end forecasts from the Inter-American Development Bank (IDB).
If Latin America and the Caribbean maintain their growth pace by the end of 2023, this trend would consolidate fifteen consecutive years of growth, which “It reflects new migration flows within the region and the contribution that migrants make to their countries of origin.”
In 2021, amid the chaos caused by Covid-19, a significant growth of 26.7% was recorded in remittances.
“Remittances received by migrant families from Latin American and Caribbean countries contribute significantly to poverty reduction, and It is one of the main causes of international migration“, highlights the organization.
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