BlackRock Highlights Latin America for AI and Energy Capital

BlackRock maintains a constructive and selective outlook on Latin America, according to its Midyear Global Outlook report. The asset manager highlighted that several countries in the region, particularly Peru and Chile, show relatively controlled inflation, credible monetary policy frameworks, and attractive real yields.

The firm noted that global bottlenecks in artificial intelligence deployment require large capital investments in data centers, chips, and digital infrastructure. Diego Mora, Country Manager for Colombia, Peru, and Central America at BlackRock, stated that Latin America is well positioned to attract this capital because digital disruption and the energy transition create structural demand for regional raw materials and infrastructure.

BlackRock also observed favorable conditions in regional demographics compared to developed markets, while noting an infrastructure gap that public balance sheets cannot finance alone. In credit markets, the firm highlighted short-duration fixed income, private credit, and local currency emerging market bonds as compelling asset classes.