Fitch: Only Mexican Retailers Escape Region Wide Challenges
"Growth has been moderate in Mexico. Consumer credit, low inflation and unemployment, higher remittances and increased retail space increased demand for retailers," said Maria Pia Medrano, Associate Director. "Steady credit card growth and a significant increase in payroll lending have benefited retail sales - a trend expected to continue through 2016."
In Argentina, the peso devaluation by 14.2 percent, coupled with diminished customer purchasing power due to high inflation and lagging real wage increases, is negatively affecting consumer consumption.
In Brazil, weak consumer confidence, rising unemployment and dramatically high interest rates will continue to pressure demand and challenge retailers to generate satisfactory operating cash flow.
In Chile, growing revenue will be difficult due to a subdued economic environment, lower consumer confidence, weak local currencies and high inflation rates in key markets including Brazil and Argentina.
Colombia's retail sector continues to face pressures from rising inflation, currency depreciation and weaker consumer confidence.
The slowdown in the Peruvian economy coupled with the presidential election has led to sluggish growth in local demand and restrained store openings during the first half of 2016.
Комментарии