• Capital raised for startups in Latin America grew 26% in 2024 from 2023, more than in Europe, which was up 7%, and Southeast Asia, which shrank 34%, according to a study published on Tuesday, May 20, 2025.
• Funding for Latin American startups is also expected to increase in 2025 thanks to a young population, accelerated digitalisation and increasingly sophisticated capital, said the report from Mexican entrepreneurship network Endeavour and private equity firm Glisco Partners.
• Still, the industry faces challenges from low participation of local investment funds in later-stage investments and global volatility, the study said. "2024 was a year for redefinition. Startups that managed to adapt to changes in the market now have more solid and sustainable models," said Alfredo Castellanos, managing partner at Glisco Partners.
• The report noted domestic investors tended to invest early, while foreign ones did so after companies were more established and scalable. Capital injections in mature companies, rather than brand new ones, are increasingly dominant. Such investments made up 65% of all capital raised in 2024, compared to 46% in 2023. "There are fewer rounds, but more capital," the report said.
• Through 2025, the report identified three main trends, including the use of venture debt and mixed rounds, which combine risk capital and debt, as alternative ways of investing. Additionally, annual growth in secondary markets, where investors can buy and sell shares from each other rather than directly from the company, was projected to rise 60%, as a way for early-stage investors to secure liquidity.
• Finally, it found employee stock ownership plans were an increasingly relevant way of attracting and retaining talent, though less than 20% of Latin American startups offered them to employees due to uncertainty surrounding the financial implications.

(Source: Reuters)

• Brazil, the world's largest poultry exporter and main poultry meat importer into the European Union (EU), is no longer allowed to ship poultry and meat products to the EU due to the outbreak of bird flu, the European Commission said.
• This comes after Brazil confirmed its first outbreak of bird flu on a poultry farm last Friday, triggering protocols for a country-wide trade ban from top buyer China and state-wide restrictions for other major consumers such as Japan.
• "EU import conditions require that the country of export (Brazil) is free of Highly Pathogenic Avian Influenza," a European Commission spokesperson said in an email. "Brazilian authorities can no longer sign such animal health certificates for export into the EU, and such certificates cannot be issued. No poultry/meat products can be exported to the EU from any part of the Brazilian territory."
• Brazilian Agriculture Minister Carlos Favaro said that under existing protocols, countries including China, the European Union and South Korea would ban poultry imports from Brazil for 60 days. However, the Commission did not give any timeframe.
• In 2024, Brazil exported more than 5 million tons of poultry meat. Of these, approximately 4.4% headed to the EU, the Brazilian Animal Protein Association (ABPA) said. Of total EU poultry imports, Brazil is the main origin, with a share of 32% last year, according to official EU data. However, the volume remained rather thin, with most of the EU consumption supplied locally. Still, despite the small volumes, the cheaper, high-added-value Brazilian imports have pressured EU prices. A halt in imports is therefore likely to come as a relief for the local poultry industry.

(Source: Reuters)

• Britain's economy will grow a bit faster this year than thought a month ago, a Reuters poll of economists predicted, partly due to unexpectedly strong growth in the first quarter that was not expected to persist.
• Sentiment has improved following a basic trade deal with the United States, which still leaves a 10.0% tariff on British goods but lowers duties on cars and steel. Economists surveyed do not expect it to make much difference to growth.
• A strong minority of economists who contributed to both this month's and last month's polls, 22 of 50, raised their growth forecast for this year by 25 basis points on average, with the median at 1.0% versus 0.9% expected in April. It was the first median upgrade in five months.
• "The UK government is massively increasing spending this year. There's a lot of money coming in and that's going to act as a bit of a tailwind as well. Real wage growth is also still quite strong, so the economy still has some reasonable underpinnings", said James Smith, economist at ING.
• The Bank of England is expected to stick to one interest rate cut per quarter, with the next likely in August and then in November, ending the year at 3.75%. Still, economists and markets are braced for inflation to rise well above the BoE's 2.0% target before easing back by the middle of next year.

(Source: Reuters)

• Some market players urged the Bank of Japan (BOJ) to increase buying of super-long bonds, or terminate tapering for that maturity, in the wake of sharp rises in their yields, the central bank said on Tuesday.
• The requests, made in the BOJ's survey of bond market participants on its taper plans, underscore the challenge the central bank faces in removing remnants of its massive monetary stimulus.
• The yields on super-long Japanese government bonds (JGB) soared to all-time highs on Tuesday on weak investor demand, as political calls for big fiscal spending flare up ahead of an upper house election slated for July.
• The spike in yields comes at a delicate time for the BOJ, which will review next month an existing taper programme running through March, and come up with a plan for the next fiscal year and beyond.
• In the survey, most market participants saw no need to tweak the BOJ's existing taper programme. Instead, they were divided on the desirable pace of tapering from fiscal year 2026, with some calling for the bank to eventually stop buying JGBs altogether, while others said it should continue to buy up to 3 trillion yen ($20.77 billion) per month.
• However, most opinions called for maintaining or slightly slowing the pace of tapering, the summary showed, heightening the chance the BOJ will proceed slowly in reducing its huge balance sheet.

(Source: Reuters)

• Barita Investments Limited (Barita) reported a net profit of $1.18Bn for the six-month period ending March 2025, marking a 38.1% decline compared to the same period last year. This drop in profitability was largely driven by a weaker net operating income.
• Impacted by a 51.4% ($1.32Bn) reduction in gains from investment activities, mainly due to the underperformance of its real estate exposures, which were adversely affected by the depreciation of the Jamaican dollar, net operating income (NOI) fell 27.7%. The falloff in NOI occurred despite a 33.4% increase in Net Interest Income.
• Gains from its private equity holdings partially offset the underperformance of its real estate portfolio.  However, Fees and Commissions Income declined by 9.0%, primarily reflecting lower asset management fee income.
• Non-interest expenses for the six-month period ending March 31, 2025, declined by 15.5% to $1.97Bn aided by reductions in both administration expenses and staff costs. Administration expenses fell by 18.4% to $1.31Bn, driven by the reclassification of costs related to the core system replacement project to intangible assets. This adjustment stemmed from significant changes in the project’s implementation approach, which influenced the appropriate accounting treatment. Additionally, the 14.0% reduction in staff costs was largely the result of a restructuring exercise undertaken in the prior year.
• Notwithstanding the underperformance of its real estate exposures, and the expectation that the performance of its broader alternative investment (AI) portfolio to taper, management still expects to continue earning from its AI portfolio. Notably, Barita recently disclosed plans to develop a warehouse and mixed-use complex over the next 18 to 24 months via its wholly owned subsidiary, MJR Real Estate Holdings. This initiative aligns with the company’s strategic focus on broadening its portfolio, aimed at enhancing long-term returns and portfolio diversification.
• Barita’s stock price has declined by 3.3% year-to-date, closing at $71.10 as of Monday. At this price, the stock is trading at a price-to-book (P/B) ratio of 2.4x, which is notably higher than the Main Market Financial Sector’s average of 1.2x.

(Source: JSE & NCBCM Research)

• The Ministry of Agriculture, Fisheries and Mining, through its Veterinary Services Division (VSD), has taken an exclusionary approach to safeguard the poultry sector against the threat of Avian Influenza, commonly known as ‘Bird Flu’.
• According to Portfolio Minister, Hon. Floyd Green, the highly contagious virus is often transmitted by migratory birds and can be introduced to poultry farms through contaminated feed, equipment, clothing, or improperly declared imports. He added that the virus has a high mortality rate and can cause economic devastation to farmers and, ultimately, could lead to trade restrictions.
• This could prove devastating to Jamaica, where poultry is the largest source of animal protein and supports the livelihood of thousands of people, with backyard farmers accounting for 40% of the country’s total production. Consequently, the Ministry has taken measures to ensure that not a single case of Bird Flu enters Jamaica.
• The measures being undertaken include enhancing border protection, encompassing strengthened veterinary surveillance at ports of entry and increased screening of high-risk imports such as poultry products, live birds and feed materials; ongoing surveillance of wild bird populations by the VSD in collaboration with international partners; and implementation of robust biosecurity measures on small and large poultry farms.
• Other measures include public education and awareness, targeting farmers, backyard growers, vendors, and pet bird owners; and implementing emergency preparedness and response measures in the unlikely event that Bird Flu is detected in the country. He emphasised that partnership is essential for the success of various initiatives against Bird Flu, asserting that all stakeholders – both locally and regionally – must report suspicious illnesses, adhere to biosecurity guidelines, and remain vigilant and proactive.

(Source: JIS)

• Chile's gross domestic product grew 0.7% in the first quarter of 2025 relative to the previous three-month period, central bank data showed on Monday, May 19, 2025. The result came in slightly above the 0.5% expansion expected by economists in a Reuters poll.
• The Andean nation's economy was up 2.3% in the first quarter from a year earlier, the central bank added, also above the 2.0% forecast in the Reuters poll.
• Trade, manufacturing, personal services, and agricultural activity were the main contributors to GDP growth, while mining, financial services and construction registered declines.
• "Looking ahead, we expect growth to slow gradually over the coming quarters as the impact of temporary drivers fades and external conditions become less favourable," Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said in a note to clients. The slowdown should not be a major worry, as leading indicators suggest that activity in Chile will remain relatively strong, Abadia added.
• The central bank also released on Monday a poll of analysts showing that they expect interest rates to be held at 5% at the bank's next monetary policy meeting in June.

(Source: Reuters)

• The Guyanese economy is projected to experience robust growth, with estimates indicating an increase of 11.7% for the period of 2025-2026. This marks a notable decline from the staggering 43.6% growth estimate for 2024, attributed mainly to less favourable base effects.
• In a noteworthy development, new tariffs imposed by the United States are not expected to significantly impact Guyana's growth trajectory as most of the country's exports to the U.S., primarily oil and gold, are exempt from these tariffs. The continued expansion of oil production is set to ensure that net exports remain a vital driver of economic growth in the years to come.
• The surge in oil revenues is also anticipated to provide the government with substantial fiscal flexibility, allowing for sustained stimulation of consumption and investment in the non-oil sector. However, lower global oil prices pose a moderate challenge to this outlook.
• As a result of these dynamics, Guyana's fiscal deficit is projected to shrink from an estimated 7.4% of GDP in 2024 to 6.9% in 2025. This narrowing of the deficit is less than previously forecasted, due in part to a weaker outlook for oil revenues amid declining global prices. The government's commitment to increased spending is likely to bolster support for President Irfaan Ali and his People's Progressive Party/Civic (PPP/C), positioning them favorably ahead of the general election slated for November 2025.
• Meanwhile, ongoing tensions with Venezuela over the contested Essequibo region continue to represent a potential external security risk. However, experts suggest that the likelihood of military action remains low in the short term, given the severe repercussions this would likely entail for Venezuela.

(Source: Fitch Connect)

• On Friday, Moody’s ratings agency lowered the U.S. government’s credit rating one notch amid mounting concerns over deficits and interest costs that remain at an unsustainable pace. It was the last of the major ratings agencies to cut the U.S. sovereign rating from the highest level.
• U.S. Federal Reserve officials speaking on Monday took on cautiously the ramifications of the latest downgrade of the U.S. government’s credit rating and unsettled market conditions as they continued to navigate a very uncertain economic environment.
• "We will put that downgrade in the same perspective that we do with all incoming information: What are the implications of this in terms of us achieving our mandated goals without commenting on what that downgrade might mean in sort of a political economy context," Fed Vice Chair Philip Jefferson said at a conference held by the Federal Reserve Bank of Atlanta.
• While not an imminent issue for the Fed, over time, higher market borrowing costs tied to a deteriorating U.S. financial position make credit generally more expensive and create restraint on economic activity. In turn, that becomes a consideration for how the Fed sets monetary policy and its expectations for the longer-run path of economic activity.
• The downgrade "will have implications for the cost of capital and a bunch of other things, and so it could have a ripple through the economy," said Atlanta Fed President Raphael Bostic, speaking in a CNBC interview on Monday. With the economy in flux, "I think we'll have to wait three to six months to start to see where this settles out, and I think that'll be an important determinant about people's willingness and appetite for investing in the U.S."
• While concerns about the government’s financial position have existed for years, and Fed officials have regularly warned that long-run borrowing trends have been on an unsustainable path, ongoing huge levels of spending, joined with a Republican budget plan now under consideration that’s likely to add even more debt, are raising fears of a nearing crisis.
• At the same time, the aggressive and erratic trade policy agenda of the Trump administration, which targets most of the world’s nations with high tariffs in a bid to bring more factory work back to the U.S., is shaking confidence in the U.S. as a reliable place to invest.

(Source: Reuters)

• The Bank of Japan will continue to raise interest rates if the economy rebounds from an expected hit from higher U.S. tariffs, the central bank's deputy governor Shinichi Uchida said, while warning of a highly uncertain outlook.
• Japan's underlying inflation will stay around the BOJ's 2.0% target if there is an economic rebound, Uchida told parliament. He noted that recent gains in domestic prices were largely due to higher import costs and increasing food costs, such as for rice.
• "We are mindful that such price rises are having a negative impact on people's livelihood and consumption," he said. "If our forecast materialises, we will continue to raise our policy rate," Uchida said. "But there is extremely high uncertainty over the outlook for each country's trade policy and its fallout. As such, we will determine without pre-conception whether the economy and prices move in line with our forecast," he added.
• Japan's economy shrank for the first time in a year and at a faster pace than expected, data for the March quarter showed on Friday, underscoring the fragile nature of its recovery now under threat from U.S. President Donald Trump's trade policies.

(Source: Reuters)