KADESU

Latin America: A Continent on the Rise
 

Latin America is once again in focus as a continent full of opportunities. An increasingly educated population, positively developing markets, and a wealth of raw material deposits make it a promising destination. Forecasts from the International Monetary Fund (IMF) and the World Bank predict real GDP growth of over 2% for 2025 and 2026, indicating a stable, albeit moderate, recovery.
 

Furthermore, Latin America demonstrates the ability and willingness to be a partner for Germany and Europe in climate policy. The region has the world’s highest share of renewable energy in primary energy consumption. Countries like Chile, Brazil, and Colombia are among the top 10 investment destinations for renewable energy. The enormous potential for green hydrogen and the presence of critical raw materials such as lithium and copper make the region a crucial partner for the European energy transition.
 

At KADESU, we are therefore committed to ensuring that German companies increasingly place Latin America on their agenda. As KADESU, we are intimately familiar with the people, countries, and markets on the ground. We have a strong network in the regional economy and close contacts with institutions and decision-makers. This enables us to provide companies with well-founded advice and to develop customized solutions for their activities in Latin America.
 

Growing Competition and the Role of Trade Agreements
 

Over the past ten years, companies from China, in particular, have significantly strengthened their market position in Latin America and the Caribbean. This presents German and European companies with heightened competition. To improve our competitive position, trade agreements play a decisive role.

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As the German Chamber of Commerce and Industry, we are therefore emphatically advocating for the EU-Mercosur agreement, which has been fully negotiated for years, to be ratified as quickly as possible. The same applies to the agreements with Mexico and Chile.

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Otherwise, there is a risk that the existing competitive imbalance, particularly with the US and China in the region, will lead to a long-term decline in German involvement—a trend we have been observing for years. It is urgently necessary to reverse this trend and to sustainably strengthen the competitive position of European companies.

Excellent economic relations have existed for over 100 years. German companies are still present in almost all countries on the continent.
 

Growth Sectors and Future Trends
 

In addition to mining and renewable energies, other sectors are gaining importance:
 

• E-commerce: Latin America has developed into one of the world's most dynamic e-commerce regions. Market revenue is expected to almost double to over $205 billion by 2028. The drivers are high mobile internet penetration and a tech-savvy audience.
   

• IT Services: The market for IT services in Latin America is expected to grow at an annual rate of 7% over the next five years. Demand is driven by the use of advanced technologies such as artificial intelligence and cloud computing. For example, Colombia is developing into a key location for data centers.
   

These developments underscore Latin America’s potential as a strategic partner for German companies in a globalized world.