Recent financial and political instability have affected the majority of Latin American countries, with 2016 ending with the highest exchange rate against the U.S. dollar, record inflation, high levels of unemployment and multiple political scandals. These factors have set the stage for a weak and uncertain start to 2017. During the first semester, we have observed some economic improvements, which have marginally improved consumer confidence in the region.
These factors have caused a fast-moving consumer goods (FMCG) slowdown in Latin America, where consumers are cautious and sensitive to price increases. As a result, consumers will continue to navigate the retail environment with a savings mindset, seeking deals and value where they can.