Why Spain Needs Latin America in 2013
Gone are the days of a new currency, and prosperous Euro-laden excitement. Gone are the days of heavy spending, and domestic growth potential. For Spain, the harsh lessons of economic misappropriation and stifling debt are a tough pill to swallow, but an all-too-common one these days for the Western European nation. With national debt and unemployment staggering the Spanish market, the country’s top companies have had to look elsewhere to build their profits and maintain steady growth. That “elsewhere”, for the most part, has been in Latin America.
With emerging markets growing at a steady pace in many countries in the region, Spanish companies have had success in selling their products and services, as well as expanding and growing their businesses in Latin America. All the while in Spain, struggling to stay afloat. While this type of Spanish success in the Americas isn’t necessarily a new thing, it holds a new kind of relevance considering the economic situation back home. The two industries that we see to be making the most out of these emerging Latin American markets appear to be Telecom and Banking.
Which Spanish Companies are Succeeding?
Companies like Telefonica S.A., Grupo Santander, and BBVA have all made significant impacts to their businesses by expanding in Latin American markets. By taking advantage of a common language, and having sewn their business roots early on, these companies have solidified a stronghold in many local markets. For example, Telefonica’s Latin American mobile brand, Movistar, which operates in 14 countries in the region, continues to grow, even as its Spanish counterpart shrinks. Companies such as Grupo Santander and BBVA have likewise made an impression through expansion in the region, operating in 5 (Santander) and 6 (BBVA) countries respectively, with current plans for further expansion in the near future.
How This Affects the Spanish Economy
While the issue of the Spanish debt crisis is far too complex to break down here, it’s safe to say that Spain’s biggest companies, from top to bottom, are feeling the pressure. This is why maintaining, and even expanding a strong market in Latin America is tantamount to staying alive financially as a whole. Latin Americans have more purchasing power than ever before, and are also investing in an unprecedented way. That means big business for companies like Telefonica, Santander, and BBVA. While this doesn’t exactly trickle down to the average Spanish worker, it does keep these businesses’ heads above water for the time being. Though it may be bittersweet, that’s still good news for the Spanish economy overall.
To get the best, most concise information available on Latin American businesses, and inside contacts with the biggest companies, contact us today. We connect you with the top decision makers in a variety of industries, including all three companies listed in this article. Check out our site for more info, and take a test run to see exactly what Latin Target has to offer.