Politics, Business & Culture in the Americas

Double Profit: Financing Consumers

Reading Time: < 1 minuteThe perils of consumer debt.
Reading Time: < 1 minute

Across Latin America, retailers, telecommunications companies and shopping malls are reaping the benefits of a growing middle class that is able to shop more and spend more. According to McKinsey & Company, Latin America is one of the largest emerging markets in the world with a combined GDP of $3.2 trillion, boasting triple the GDP per capita of China and seven times that of India.1

Greater consumer spending, however, is not just a middle-class phenomenon. Lower income populations want to buy the same flat-screen televisions and refrigerators; and if they lack the disposable income many turn to the business of consumer credit loans.

In Mexico, where 52 percent of the population lives on less than $80 a month2 and a large percentage of the population remains unbanked, consumer credit lending is soaring…

 


Like what you've read? Subscribe to AQ for more.
Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Sign up for our free newsletter