Water Ways Technologies: South America’s economy is on a roll again

The South American economy has experienced ups and downs over the decades. In Argentina, inflation of 48 percent caused a stir in 2021, and the country even maneuvered into national bankruptcy. But where there is shadow, there is also light, as it has always been on the continent. The South American economy survived the crown pandemic surprisingly well, with gross domestic product (GDP) gaining 6.4% last year in Latin America’s six largest economies. Only the Asian region was able to record similar growth thanks to China’s economic power. But darker clouds are already gathering over South America as inflation is causing problems for nations and central banks are already taking countermeasures. The economic pace could therefore slow down, but experts still expect moderate economic growth at 2.2%.

The turning point in South America’s corporate history was 2006. At that time, Latin American corporations began a record number of mergers and acquisitions. Especially exciting: company mergers have taken place not only within countries, but also between countries. This gave a significant boost to the economy – and the development made the region more and more interesting for foreign companies. That is why many South American countries have become important business partners for corporations from all over the world. This is especially true of Brazil. The fifth largest country in the world, with 212 million people, represents the largest economy on the continent. If industry can be further developed and modernized, Brazil and other South American countries should remain competitive.

Stocks of companies that have established themselves in South America

Water ways (ISIN: CA9411881043): The Canadian company is doing great in the agrotechnical industry. It specializes in innovative and modern irrigation solutions, which are of interest to many agricultural producers around the world – including South America. Water Ways has developed a technology used in agriculture. The Group, together with Desarrollo de Sistemas Hidraulicos SA and the shareholders of Hidrotop, reached an agreement which enabled the acquisition of 51% of Hidrotop shares. Hidrotop is an irrigation and hydraulic engineering company operating in Argentina and Chile. Hence, Water Ways can also benefit from the South American economy.

Volkswagen (ISIN: DE0007664039): The German car manufacturer was one of the pioneers among large corporations when it came to operating in South America. With a large plant in Brazil, VW was present on the continent more than 60 years ago.

Evonik Industries (ISIN: DE000EVNK013): The German company is a world leader in the field of specialty chemistry. In South America, Evonik has branches in Brazil and Argentina. The headquarters are in Essen.

Schroder ISF Latin American (ISIN: LU0086394185): The fund brings together a range of companies with a presence in South America. Vale (ISIN: US91912E1055) acts as a leading holding company, while Petroleo Brasileiro (ISIN: US71654V4086), Itau Unibanco (ISIN: US4655621062) and América Móvil (ISIN: US02364W1053) also play an important role.

The ups and downs of the South American economy are well known and will be ubiquitous in 2022. In recent years, however, these countries have consistently shown that they are attractive locations for companies from all over the world. The latter can take advantage of the colorful continent’s many exciting opportunities – just like investors.

Shown on Thursday June 30, 2022 at 5:00 PM Water ways at the virtual conference “Top technology and know-how from North America”. Register for this free virtual event with Eva Reuter: e.reuter@dr-reuter.eu. More information can be found here: https: //small-microcap.eu/profil/spitzentechnologie-know-how-aus-norda …

Sources:

https://dzresearchblog.dzbank.de/content/dzresearch/de/2021/11/05/late…

https://bdi.eu/artikel/news/brasilien-important-economic-partner-i…

https://www.handelsblatt.com/arts_und_style/aus-aller-welt/latinameri…

https://www.finanznachrichten.de/nachrichten-2022-01/55004996-water-wa…

https://www.handelsblatt.com/politik/international/suedamerika-kaum-wa…

https://www.latinamericaverein.de/fileadmin/_migrated/news/Deutsche_U…

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Disclaimer: All information published in this newsletter / article is based on careful research. Only sources which the authors believe are reliable are used. However, no liability can be assumed for the information used. This information does not constitute an offer to sell the stock in question or a solicitation to buy or sell any securities and are based on sources that the publisher believes to be reliable.

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