International Business Development in Latin America: Opportunities in a Transformative Decade

Latin America and the Caribbean (LATAM) is entering a decade of transformation. With shifting global supply chains, rapid adoption of digital technologies, and increased investment in renewable energy, the region presents unique opportunities for international business development.

1. Economic Outlook

Despite global uncertainty, LATAM is projected to grow at 2.1% in 2025 (International Monetary Fund, April 2025 World Economic Outlook). While this growth rate trails Asia, it reflects a resilient rebound, particularly in countries such as Mexico, Brazil, and Colombia.

Nearshoring is a major driver. The Inter-American Development Bank (IDB) estimates nearshoring could add $78 billion annually to the region’s exports (IDB Report on Nearshoring, 2023). Mexico alone is capturing significant demand as companies seek alternatives to Asia.

2. Renewable Energy & Climate Transition

The global climate transition is fueling large-scale investment. LATAM already generates 33% of its energy from renewables, compared to the global average of 13% (International Energy Agency, 2024). Countries like Chile and Brazil are leading in solar and wind deployment.

Investment in green hydrogen in Chile and offshore wind in Brazil illustrates how international companies can partner with governments and local firms to accelerate decarbonization.

3. Digital Transformation

Digital adoption is accelerating. The region’s e-commerce market grew 14.3% in 2024, reaching $187 billion (Statista, 2025). With a population of over 650 million and rising smartphone penetration, opportunities exist in fintech, logistics, and digital services.

Brazil and Mexico remain the largest e-commerce markets, while Colombia and Peru are emerging fast.

4. Multilateral Investment

Multilateral banks continue to play a central role. In 2024, the IDB approved $23 billion in financing (IDB Annual Report, 2024), much of it targeting infrastructure, renewable energy, and social development. Similarly, the World Bank invested $10.8 billion in LATAM projects in FY2024 (World Bank Annual Report, 2024).

For international firms, aligning with these multilateral priorities — especially in sustainability and inclusion — can unlock financing and de-risk market entry.

5. Key Takeaways for Businesses

• Supply Chain Diversification: Nearshoring to Mexico and Central America is not a trend, it’s structural.

• Green Opportunities: Renewables, waste management, and climate adaptation are major investment areas.

• Digital Growth: Fintech, logistics tech, and e-commerce are scaling rapidly.

• Partnership Models: Collaborating with governments, multilaterals, and local businesses increases chances of success.

LATAM’s future is not without challenges — political transitions, inflationary pressures, and regulatory complexities remain. But for companies prepared to take a long-term, partnership-driven approach, the decade ahead offers extraordinary growth potential.

Sources

• International Monetary Fund (2025). World Economic Outlook, April 2025.

• Inter-American Development Bank (2023). Nearshoring Report.

• International Energy Agency (2024). World Energy Outlook – Renewables Data.

• Statista (2025). E-commerce in Latin America Report.

• Inter-American Development Bank (2024). Annual Report.

• World Bank (2024). Annual Report – Latin America Projects.