expects Latin American corporate revenues to improve —as a whole— in 2021, with an expected recovery of US$80 billion.
Oil and gas, metals and mining, pulp and paper, real estate, retail, sugar and ethanol will be at the forefront of the recovery, according to Fitch's "Latin American Corporate Credit Insights" report.
"Key drivers of strong demand and high prices for commodities such as oil, copper, iron ore and zinc, are record levels of steel production in China, a weak US dollar, massive fiscal and monetary stimulus in the Americas and Europe, as well as optimism surrounding the vaccine rollout," said Joe Bormann, Managing Director.
"The pricing environment is further supported by inventory levels that fell during 2020, due to supply disruptions caused by measures to contain the coronavirus pandemic," he added.
The expected recovery in 2021 will support the real estate and retail sectors following the 2020 declines.
Non-essential retailers were hit especially hard by interruptions to business in 2020 and future coronavirus-containment measures could cause extended restrictions, he concluded.