With the recession hitting the developed nations back in 2008, once again the South American nations are poised for a strong recovery. The Wall Street Journal Business report from Santiago, Chile estimates Latin American nations will average a 6 percent growth for 2010 and 2011 with increasing investment flows.
Chilean investment bank Larrain Vial executive Tomas Langlois predicted Latin American nations will emerge as market leaders in the coming years. Specifically in the sectors of Banking, housing and consumer confidence will have plenty of room for an economic boom.
Emerging as a leader is Chile because of factors improving in the retail and banking sectors. Private consumption has been responsible for the 50 percent of Chile’s growth, in spite of the earthquake that hit the region back in February.
The United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC) found that Brazil will be leading the region with 7.6 percent GDP (Gross Domestic Product). However in the Wall Street Report Brazil does not get mentioned, but these countries are on track to be the most economically viable.
Uruguay will be producing 7.0 percent GDP growth and also tied with Paraguay with 7.0 percent. Argentina on the other hand will have 6.8 percent and 6.7 percent for Peru. According to the ECLAC report, the countries with lower economic growth are Dominican Republic with 6 percent, Panama 5 percent, Bolivia 4.5 percent Chile 4.3 percent and Mexico (4.1%). Colombia will have 3.7 percent, Ecuador and Honduras 2.5 percent, Nicaragua y Guatemala 2.0%, and Venezuela will experience negative growth: -3 percent.
The economic report is one aspect of this story, but politics also plays a significant role in the development of these countries. Nations like Venezuela, Ecuador, Bolivia and Nicaragua all have installed 21st century socialism. Still their socialist system is a work in progress or just a regression with power residing completely in the government than the democratic process.
After the U.S dealt with its recession and stabilized the crisis, European nations are dealing with a recession of their own at the present time. Not only threatening to create a second global crisis, but perhaps see a few countries not utilizing the Euro as their currency.
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