Market concentration will remain high in Latin America

Significance Markets in the region are characterised by the dominance of a small number of large firms, and the Bank believes that governments can spur growth by strengthening competition agencies, supporting innovation policies and boosting managerial skills in order to reduce market concentration. Impacts Increased enforcement could lead to accusations that competition agencies have become politicised. Corruption allegations could harm the business environment and dampen growth. Dominant firms may threaten to curtail investment or cut jobs if their positions are threatened.