After a difficult 2024, Latin American corporations are expected to witness earnings growth of almost 16% in 2025, according to JPMorgan (JPM, Financial). Apart from Colombia, almost all of the nations in the area are anticipated to show double-digit gains, according to JPMorgan analyst Cinthya Mizuguchi in a note to investors.
With regional corporate earnings expected to have dropped by 24%, Latin America is ranked as the worst-performing region worldwide in terms of performance and year-end projection, Mizuguchi observed. A major contributing cause to the drop has been declining value of money; the U.S. dollar has strengthened over 5% versus a basket of currencies since January.
Looking ahead, industries including energy, industrials, financials, technology, healthcare, and telecom are expected to recover substantially in 2025, showing double-digit increase following significant contraction in 2024. Next year, the consumer discretionary sector is anticipated to drop by 9%, while this year it surged by 136%.
Though 2024 presents challenges, Mizuguchi pointed out a bright future for 2025, with foreign exchange stabilization significantly raising income forecasts all throughout the region.
