Two factors particularly influenced the growth of wealth management in Latin America over the past decade: China’s appetite for raw materials, which whisked commodities prices into a super-cycle and pushed Latin American economies – and individuals’ income – up with them; and the deepening of financial markets across the region, which created more appealing onshore investment products.
The former has lessened. Countries are suffering because of China’s reduced imports, with Latin America's largest economy, Brazil, in particular feeling the pinch due to this lack of demand. Local investments look likely to be less relevant to wealthy individuals, who, because of economic as well as political uncertainties, prefer to lock money safely offshore. This, inevitably, gives a leg-up to international firms.
