South American businesses face climate risks and shifting consumption patterns

Small and medium-sized enterprises (SMEs) are facing significant economic challenges due to climate phenomena and shifting social demographics in South America.

In Peru, the El Niño phenomenon is projected to maintain extraordinary magnitude until January 2027. Experts from Interbank and the Lima Chamber of Commerce warn that intense rainfall could increase transport costs by 20% to 30% due to infrastructure disruptions. Businesses are advised to identify critical activities and reinforce operational continuity to mitigate risks to supply chains and services.

In Argentina, business leaders at the IDEA Colloquium expressed concern regarding the shrinking middle class and declining consumption. Data indicates that the proportion of Argentines identifying as middle class has dropped from 90% two decades ago to 70% today. Economic shifts have created a fragmented social pyramid, forcing companies to adjust sales strategies to reach segments with reduced purchasing power.