“If there is a fear of falling, the only safety consists in deliberately jumping.” - Carl Jung
Brazil: President Luiz Inacio Lula da Silva stated that Brazil's economy is expected to grow by at least 2% this year, and he believes it could even exceed that. Lula expressed confidence in the country's economic stability and criticized the high interest rates, which he sees as a hindrance to growth.
Peru: Health minister, Rosa Gutierrez, has resigned amid a severe dengue outbreak that has caused a significant increase in deaths and infections. The country is experiencing a surge in mosquito populations due to heavy rains from the El Nino climate phenomenon, leading to a worsening of the outbreak.
Jamaica: Finance Minister Nigel Clarke has expressed interest from other Caribbean countries in joining a regional catastrophe bond that would provide protection against hurricanes and spread investor risk. Clarke plans to reissue Jamaica's current bond and is promoting the idea to countries like Barbados and the Bahamas, aiming to diversify investor risk and lower issuance costs while addressing increased hurricane activity due to climate change.
Argentina: A judge has reportedly issued arrest warrants for four Lebanese men suspected of involvement in the 1994 bombing of a Jewish community center in Buenos Aires. The judge believes the suspects, believed to be living in Paraguay or Brazil, had ties to Hezbollah, and while Argentine courts have blamed Iran for the attack, no one has been brought to trial in connection with the bombing.
The Bolivian entrepreneur Marcelo Claure, former COO of SoftBank, has launched a new venture firm called Bicycle Capital, targeting a $500 million fund. The firm will focus on startups in Latin America and plans to invest in about 10 to 15 companies, primarily in Series B and later rounds.
Other VC funds investing in LATAM announced their new funds. See the tweet here.
Avancargo: Is a B2B trucking platform that provides carriers and shippers with better availability by connecting supply and demand. Avancargo provides transparent management towards all those involved in the logistics chain. With over 100’000 registered and audited trucks and with more than 1’000 monthly trips, Avancargo has become the household name for logistics in Southern South America. Get to know the case here.
GetGloby: An AI-powered platform that instantly translates Ads Campaigns into 100+ languages with high-performing results thanks to JAGA, our proprietary translation technology, which is capable of understanding the nuances of every market to adapt the original message. Get to know the case here.
Dive deeper into other fundraising firms in LatAm here.
IMF reports of the week
Paraguay is experiencing a recovery from the severe drought of the previous year, with expected economic growth of 4.5% in 2023. Agricultural exports are improving, contributing to a better external current account, and inflation has been declining under a tight monetary policy. The government has successfully reduced the fiscal deficit, and the financial and banking sector remains stable. Santiago Peña, the candidate for the ruling Colorado party, was elected President in the recent national elections.
Costa Rica's reform efforts towards strong and sustainable growth, supported by a 36-month Extended Fund Facility (EFF), are yielding positive outcomes. The country is committed to implementing reforms in public debt management, institutional setup, strategy, domestic market development, and the consolidation of the state's assets and liabilities, including state-owned enterprises and banks.
