"I never ruled anything out in life” - José Luis Chilavert (Paraguayan professional footballer)

MARKETS

December 5, End Of Day

• Argentina
  • S&P MERVAL Index = 2,211,582.91 (YTD = 137.88%)
• Brazil
  • BOVESPA Index = 127,857.58 (YTD = -4.72%)
• Chile
  • S&P IPSA Chile = 3,601.28 (YTD = 3.86%)
• Colombia
  • MSCI COLCAP = 1,397.50 (YTD = 16.93%)
• Mexico
  • IPC Mexico BMV = 51,756.84 (YTD = -9.81%)
• Peru
  • S&P/BVL Peru = 29,633.67 (YTD = 14.15%)

BUSINESS

Paraguay’s President: Untapping the Nation’s Potential

We’re excited to share an interview we did with Paraguayan President Santiago Peña. In this exclusive interview, President Santiago Peña shares his vision for Paraguay's future, exploring the challenges, opportunities, and untapped potential of this country.

1. A Vision for Transformation

• From Landlocked to Mind-Unlocked: President Peña emphasizes a mindset shift to integrate Paraguay into the global economy.
• Three Pillars for Development:
  • Feeding the World: Paraguay, capable of feeding 100 million people, must overcome the challenges preventing it from realizing its full potential in global food production.
  • Inclusive Economic Growth: Emphasizing shared prosperity, Paraguay's robust economic growth—one of the strongest in Latin America—must benefit a broader base of its population.
  • Global Integration: Paraguay must strategically integrate into the world economy, shedding its historical isolation described by Augusto Roa Bastos as "an island surrounded by land."

2. Strategic Advantages for Growth

• Stable Economic Foundations: Paraguay has stable and low inflation (4% average over the past decade) and a prudent fiscal policy with one of the region’s lowest debt-to-GDP ratios.
• Renewable Energy Powerhouse: The Itaipu and Yacyretá dams supply 100% renewable energy, enabling sustainable development in industries like tech and manufacturing.
• Young and Open Population: Paraguay’s demographic advantage positions it as a key player in workforce development and global partnerships.

3. Investing in Human Capital

• International Education Initiatives: Collaborations with Taiwan and expansive scholarship programs aim to develop skilled professionals.
• Future-Oriented Workforce: Investments in education align with the country’s goal of becoming a regional leader in innovation and technology.

Fundraising picks of the week

Aquit: Pioneering advanced biotech solutions, Aquit addresses the challenges of sustainable aquaculture. With a natural immunity booster and a focus on replacing antibiotics, they've formed R&D alliances with other key players. Dive deeper into the case here.

Presto: Presto has made significant developments with 1300 monthly active users in just three months and a waitlist of more than 50,000. Their unique position as the only non-regulated fintech with a VISA partnership in Bolivia. Get to know the case here.

Elytron: Utilizing AI and machine learning, Elytron fosters a deeper understanding of microorganisms, addressing key global challenges efficiently. This innovative approach positions Elytron at the forefront of biotechnological advancements Dive deeper into the case here.

Interested in Latin American businesses? Subscribe here to get business updates in the verticals that interest you the most.

Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Mercosur: Negotiators are racing to finalize the long-delayed EU-Mercosur trade deal, with optimism rising ahead of a summit in Montevideo. Backed by Brazil, Argentina, Paraguay, and Uruguay, the agreement faces resistance from France and Poland over agricultural imports. Proponents, including Germany and Spain, emphasize the deal’s potential to reduce reliance on China and counter U.S. tariff threats. While European Commission President Ursula von der Leyen’s attendance signals commitment, skepticism remains about immediate ratification.

Venezuela: Venezuela's 2025 budget is set at $22.7 billion, an 11% increase from 2024. Contributions from state oil company PDVSA will drop 14.6% to $10.1 billion, covering 53% of spending, down from $11.9 billion this year. Tax revenues will provide $5.25 billion, or 28% of the budget, with additional funds from mining, loans, and debt. Vice President Delcy Rodriguez highlighted improved fiscal management despite ongoing economic challenges.

Mexico: Mexico announced a 12% increase in the minimum wage, raising it to $14.34 per day nationwide and approximately $21.60 near the U.S. border. President Claudia Sheinbaum emphasized the hike's role in combating poverty without fueling inflation, as part of a broader effort to rebuild purchasing power. The minimum wage has more than doubled since 2018, with plans for continued annual increases to meet basic household needs by 2030.

FURTHER READING

Check our recently published insights here. Recent post:

📈 E-commerce Surge in Latin America: Trends and Innovations

E-commerce in Latin America is booming, driven by increased internet and mobile device usage, and evolving digital payment methods. With a market potential projected to reach $200 billion by 2025, although challenges like logistical complexities and regulatory variations persist.

Key Innovations Fueling Growth:

• 🤖 AI-Powered Personalization: Leveraging AI to tailor shopping experiences, enhancing product recommendations based on user behavior.
• 🛍️ Social Commerce: Integrating shopping with social media platforms, allowing direct purchases from feeds, exemplified by Mercado Libre's Mercado Shops.
• 🕶️ VR and AR: Utilizing immersive technologies to enhance the online shopping experience, like virtual try-ons and in-home product previews.
• 🔗 Blockchain: Increasing transaction security and supply chain transparency with blockchain technology, with initiatives like Mercado Libre’s Mercado Pago Token.
• ♻️ Sustainable E-commerce: Focusing on environmental sustainability in online retail, aiming to reduce the ecological footprint of digital commerce.

As digital transformation accelerates, these innovations are positioning Latin America's e-commerce sector for substantial growth and international competitiveness.

🔍 Read more here.

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