Companies in Latin America have been hit—like the rest of the world—by the economic and political problems that plague the whole world, so it is not surprising that they see these scenarios as their main challenges for the medium term.
According to an EY survey on the main internal and external challenges for companies in the region in the next three years, 47% of participants think that the global economy is the first challenge to overcome.
In the second position is political uncertainty with 47%, mostly influenced by next year’s elections and incidents registered in the Executive branch of some countries. Inflation also keeps Latino business owners on alert.
For the Mexican market, the main global challenge is the economic scenario with 43% of responses, followed by the entry of new competitors with 37% and the change in consumer demand. with 33%.
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Regarding the main challenges encountered by companies internally, the need to implement new technology towards a digital transformation appeared in 38% of the responses.
The second position is occupied by the growth of the market share with 37% and in the third position is the improvement of operation, productivity and costs with 35%.
In particular, Mexican companies see improving operations, increasing productivity and reducing costs with 39% as their main content challenges. The second position is occupied by achieving greater market growth.
Latin American companies will face economic challenges and political changes both domestically and internationally in the coming years. Three years after the start of the pandemic, companies feel better prepared to face market developments. Its main challenges are to continue digital transformation, sustain growth and achieve operational improvements, increase its productivity and reduce costs.