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Latin America and the Caribbean are on the radar of many global companies for business growth, and talent recruitment. Many international companies monitor these regions for business growth and talent recruitment. More recently, these countries have shown signs of controlling inflation and posing exciting interest rates.
However, there is great divergence regarding demand, supply, costs, legislation, and international relations. So, it’s essential to identify the most effective business expansion opportunities in Latin America before entering this market in 2025.
As the CEO of an employer of record company with expertise in HR tech services in LatAm, I want to report on three countries that offer favorable circumstances for work collaboration.
Business expansion opportunities in Latin America
Here are essential Latin American destinations you should focus on in the following year, and why.
1) Guyana
Guyana is a small country in South America that has been going unnoticed by many entrepreneurs. However, it has morphed into the world’s fastest-growing economy in the last two years. And it looks set to keep growing at an impressive pace in the years ahead.
Due to massive oil production, green growth, rising output, and high external geopolitical tensions, this country is set for sustained progress. This makes investing in Guyana one of the boldest business expansion opportunities in Latin America and the Caribbean.
The country is rich in arable land and seeks to diversify its economy with growing agriculture and manufacturing sectors. Moreover, Guyana is the only country in South America with English as its official language.
The United States is Guyana’s largest trading partner, with accumulated trade of over $3.9 billion. The relationship between the countries has tightened due to tension between the US and Venezuela and the Middle East.
2) El Salvador
El Salvador is another destination to keep an eye on in 2025. It is the smallest nation in terms of size in Central America, and it works in the GMT-6 time zone, the same as Washington, D.C.
The country has been going through many important changes. In 2023, it was named the safest country in Latin America and the Caribbean, ranking at #8 worldwide. Technological development is also vital in this territory, with governmental projects aimed at innovation and education.
Since 2001, El Salvador has been a dollarized economy, looking to facilitate international collaboration with key countries. In 2021, Bitcoin was accepted as legal tender in a pioneering experiment with digital currencies, which has generated millions in profits so far.
In recent years, El Salvador has shown remarkable progress in attracting foreign direct investment (FDI). It ranks in the Top 10 in Ease of Doing Business. In December of 2024, UN Tourism launches the report “Tourism Doing Business: Investing in El Salvador” to promote sustainable growth in the country.
3) Argentina
Argentina made international headlines at the end of 2023 with its agitated presidential election, which resulted in significant changes to its administration for 2024.
As of now, Argentina is living in moments of economic stability. It’s approaching a total reduction of the official vs. unofficial exchange rate gap, which can close by Q1 of 2025.
As the second-largest country in Latin America, Argentina has become one of the most attractive marketplaces for global investors. Usually, its legislation does not set prohibitions or restrictions on foreign investments.
Argentina has a talented workforce, with the highest English proficiency score of all Latin America. Best prospect sectors include Agriculture, Construction, Energy, Healthcare, and Cybersecurity.
How to enter the LatAm market efficiently
There are several options for establishing business expansion opportunities in Latin America. You can incorporate a new company, register an established foreign company, operate as a sole proprietorship, or establish a regional partnership.
For investors in countries like the United States and Canada, nearshoring is a growing strategy for talent sourcing. It involves getting cost-effective foreign hiring solutions, while still working with people in similar time zones to your base country.
Furthermore, there is a tendency in US companies to create remote teams based in strategic locations, instead of recruiting dispersed professionals. In practice, this could mean setting up a technology staff centered in El Salvador or creating a marketing team all based in Argentina, for example.
In any case, it’s important to enter this market with at least some regional knowledge, to better navigate the ups and downs of business expansion opportunities in Latin America. This also means avoiding legal complications, which differ from country to country.
To optimize this process, it’s possible to outsource your talent acquisition strategy to expert companies. Many can serve as a representative for your company in LatAm, find the best hiring opportunities, as well as help you plan your scalability into one or more Latin American nations.
About the author
Victor Anaya is the Co-Founder and CEO of Serviap Global, an international provider of RPO and EOR services. With a passion for technology-focused startups, he is also an Angel Investor. Over his years of experience, he’s developed expertise in Latin American markets.
