By Carolina Casas Anzola
The economic outlook for 2024 is characterized by a mix of risks and opportunities.
Risks include war in Ukraine, inflation and rising interest rates.
Opportunities include economic growth in some regions, recovery in demand, and investment in new technologies.
Opportunities
The outlook for Latin America is positive, since there is GDP growth, there is a positive impact due to near shoring, which is reflected in the growth of job opportunities in industrial sectors with an export vocation.
Near Shoring
Around 120 companies have made investment announcements in the country linked to nearshoring for $44 billion on a multiyear basis, so far in 2023.
Barclays estimates that the foreign investment flows that Mexico will attract due to the phenomenon in the coming years will add between $40 – $50 million and will contribute between 0.4 and 0.5 percent of the GDP in 2024.
Recession?
However, in 2024 there will be an election year in several countries creating uncertainty, violence, the demand for specific technical skills, causing talent to move to the fastest growing regions, putting pressure on salaries and urgently requiring the generation of compensation mechanisms, retention, and growth of our collaborators.
Although there is a recessionary scenario in the world, it may not be as deep. And if we do not prepare adequately, we may lose opportunities, or weaken our companies by making bad decisions. We must act wisely.
There are seemingly isolated and meaningless economic data, however, if we correctly identify the relevant variables for our businesses, we can capture important opportunities, which must be accompanied by the generation of capabilities to maintain them over time.
2024 CSIA Conference
At CSIA we have always been known for offering all possible support to our members and this 2024 will be no exception.
I invite you to participate in the 2024 Conference. Let’s prepare our luggage, documentation, and get ready to find new business opportunities that continue to bring us closer to the objectives that each of you have set for yourself.
See you in Dallas in 2024!
Carolina Casas Anzola is LATAM director for the Control System Integrators Association in Mexico City, Mexico.
