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ECONOMY | 11-07-2019 11:55

MercadoLibre optimistic on Brazil's economy after 2018 hurdles

Chief Executive Officer Marcos Galperin rejects views of economists who have slashed their forecasts for the region’s biggest economy.

Latin America’s largest e-commerce retailer is optimistic that economic growth is set to pick up in Brazil, its biggest market.

MercadoLibre Inc. expects a turnaround in the country, Chief Executive Officer Marcos Galperin said in an interview with Bloomberg Television, rejecting the views of economists who have slashed their forecasts for the region’s biggest economy. The retailer’s profitability was hurt last year after postal service Correios hiked freight fees, adding to woes caused by a trucker strike that paralysed the country for 10 days.

“We are very optimistic about Brazil going forward,” Galperin said from Allen & Co.’s Sun Valley conference. “The economy is poised to start growing faster than what it has grown in the past.”

Shares of the company have soared 116% this year, boosted by a $1.9 billion capital increase anchored by PayPal, and earnings that highlighted the company’s booming payments business. The company will use the funds it raised to drive growth of financial services in the region, including QR payments, credits, and investments through the company’s wallet system, Galperin added.

-BLOOMBERG

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