2018 will have different events that will give an interesting dynamic to the economic sector in each of the countries of Latin America. The context seems to be favorable, according to analysts, which we also expect to have an impact on our paints and coatings industry.
In a study conducted by Coatings World, the global coatings market grew in 2017 at an estimated rate of 4.2% in terms of volume and 5.0% in terms of value as of 2016. The prediction for 2018 is that growth will be solid again although not as high as in 2017 with volume growth of 3% and 4.4% value growth. Growth values in 2017 were slightly higher than global GDP growth of 3.7%.
In a global market aspect, ECLAC estimates that the economies of Latin America and the Caribbean would experience a moderate recovery in 2018 and grow 2.2% this year, after scoring an average of 1.3% in 2017. In addition, it is expected that in 2018 the global economy will expand at rates close to those of 2017 (around 3%) and that there will be a greater relative dynamism of emerging economies compared to developed ones.
By region, ECLAC analyzes that Brazil will have an economic growth of 2%, compared to 0.9% in 2017). In addition, several countries that had been growing at moderate rates will have an acceleration of economic activity (for example, Chile, from 1.5% in 2017 to 2.8%; Colombia, from 1.8% to 2.6%; and Peru, from 2.5% to 3.5%). In Latin America, Panama will be the economy that will record the highest rate of expansion next year (5.5%), followed by the Dominican Republic (5.1%), and Nicaragua (5.0%). For their part, Cuba, Ecuador and Venezuela will mark figures of 1%, 1.3% and -5.5%, respectively, while the rest of the economies of Latin America will grow between 2% and 4%.
However, the presidential elections in countries such as Costa Rica, El Salvador, Colombia, Paraguay, Brazil, Mexico and Venezuela, may generate some economic uncertainty that can be reflected in the economic dynamics of our industry, especially in construction, however, we are confident that companies already have these issues in the folder to take preventive actions that minimize the possible economic impact that this generates, if it is presented.
My wish that this new year will surpass the forecasts and be the best for all of you.