Latin America’s business climate peaks in Q3 2023, led by Brazil and Mexico

The business atmosphere in Latin America peaked in the third quarter of 2023, showing the best figures in two years, as reported by Brazil’s economic research center, the Getúlio Vargas Foundation (FGV).

The so-called Latin American Economic Climate Index (ICE) rose significantly, moving from 65.8 points in the second quarter to 99.6 in the third, based on expert surveys across 15 nations.

This spike is attributed to the economic growth of Brazil and Mexico, the region’s top economies.

Brazil’s index soared from 58.8 points in the second quarter to 121.4 in the third, its highest in eleven years.

Meanwhile, Mexico’s index advanced from 85.7 to 118.7 points.

FGV credited Brazil’s improved performance to factors like decreasing inflation rates and new fiscal reforms, while Mexico’s rise was due to declining inflation and increased direct investment flows from the U.S. and China.

While all the surveyed countries, except Uruguay, showed improvements in their business environments, Paraguay leads the region with 172.7 points.

It’s followed by Brazil (121.4), Mexico (118.7), and Uruguay (114.9).

The research also highlights an overall positive projection for Latin America’s GDP growth, with the most significant growth expected in Paraguay at 4.6%.