December 6, 2023

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WeWork’s bankruptcy creates uncertainty in…

WeWork’s bankruptcy creates uncertainty in…

MEXICO CITY – The week was dominated by the WeWork bankruptcy and the repercussions it could have in Latin America. At the same time, the region is working to solve problems such as hunger and economic downturn.

WeWork declares bankruptcy, the future of its business in Latin America

At the beginning of the week, the startup is flying high WeWork Company(we) The company has filed for bankruptcy, marking a new low for the coworking company that has struggled to recover from the pandemic and its failed initial public offering in 2019.

The New York-based company listed its assets and liabilities in the range of $10 billion to $50 billion in a Chapter 11 petition filed in New Jersey. The filing allows WeWork to continue operating while it develops a plan to pay off its debt.

according to WeWork Latin America CEO, Claudia WoodsThe company’s contractual flexibility with customers and tenants is a critical differentiator for its operations in Brazil.

The executive said in an interview with Bloomberg Linea that The challenges facing WeWork’s US judicial reorganization do not affect the independence and financial health of its Latin American operations.

According to Woods, the structure of the joint venture signed with SoftBank in the region allows the joint business company’s local management to be able to respond to the specificities of each market.

Woods, who previously led Uber in Brazil, defended the sustainability of WeWork’s business model, given the circumstances of the country and region and the development that has occurred.

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The most expensive neighborhoods in the region

In recent months, the Latin American real estate market has suffered from a scenario of high interest rates and inflationThis makes obtaining credit to purchase goods and obtain various services more expensive. This puts pressure on various housing sectors and leads to higher prices in the most expensive neighborhoods in the region.

Added to these factors is the devaluation of the currencies of some Latin American markets compared to the dollar, which in the case of the Argentine peso reaches 49.40% so far in 2023, which may affect real estate prices.

The countries that currently have the most expensive neighborhoods in the region are Argentina, Mexico and Brazil, Which are also three of the largest economies in the region and have developed a large real estate market, according to a report from the platforms Property, Lamudi and TrueFit.

The scourge of hunger in Latin America

Hunger strike total 43.2 million people in Latin America and the Caribbean, equivalent to 6.5% of the region’s populationA UN report concluded that the prevalence remains 0.9 percentage points higher than records from 2019, before the Covid-19 pandemic.

Of those affected by hunger in Latin America and the Caribbean, 26.8 million reside in South America (6.1% of the population), 9.1 million in Central America (5.1%), and 7.2 million in the Caribbean (16.3%). According to the report. Regional Panorama of Food Security and Nutrition 2023.

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In the world, the report indicates that the prevalence of hunger remained relatively stable between 2021 and 2022, affecting 9.2% of the population in that period.

The spread of hunger in Latin America and the Caribbean It remains above pre-pandemic levels, although there is a slight improvement of 0.5 percentage points compared to the previous measurement.

The prevalence of undernutrition in Latin America and the Caribbean between 2020-2022 was highest in Haiti (45% of population), Bolivia (19.4%), Honduras (18.7%), Venezuela (17.9%), Nicaragua (17.8%), Ecuador (13.9%), Guatemala (13.3%), Trinidad and Tobago (12.2%), Suriname (9%).

Among the largest economies in Latin America, the prevalence of undernutrition is highest in: Peru: (7%); Colombia: (6.6%); Panama: (5.3%); Brazil: (4.7%); Argentina: (3.2%); Mexico: (<2.5%); Chile: (2.5%).

Argentina and Venezuela, the two countries that experienced the largest economic contraction since 1980

Between 1980 and 2022, Argentina experienced 19 years of GDP contraction, making it the world’s most contracted country in those four decades.This is according to information published by Moody’s, an American investor services company.

The second place in this ranking is occupied by another Latin American country: it Venezuela, which saw its GDP fall 18 times from 1980 onwards.

The first six places in this ranking are occupied by the countries of the American continent: Suriname is the third in terms of the largest number of contractions (17); Then comes Barbados (with 16); The fifth place is occupied by Trinidad and Tobago (15); And sixth for Nicaragua (14).

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