I was doing some research about the development of economies within Latin America, and it made me think how important these markets are, and how people around the world underestimate Latin America´s potential for success in the near future. All eyes are on India and China, but people forget or don´t even realize what´s happening on their side of the world, the western hemisphere. This article was taken from the company, Global Intelligence Alliance, and I think gives great insight to the development of Latin American economies, and some projections for the future:
"With a regional economy of approximately US$ 4 trillion and a conservative annual growth estimate of over 5% for the next five years, Latin America is a market to watch. More than 60 million consumers rose from poverty into the consumer class in last five years, half of whom were from Brazil. As the only westerner of the BRICs, Brazil is likely to become the world’s fifth largest economy by 2014 and São Paulo will be the world’s fifth-wealthiest city by 2025. Brazil will host the 2014 World Cup and 2016 Olympics, and is expected to offer a sustained positive outlook for development and investment.
The second largest country in the region, Mexico, is part of NAFTA and is a gateway to Central American and Caribbean markets. Chile has one of the highest GDP per capita rates in the region and is a model for attracting FDI through international economic agreements. Even Colombia has surpassed safety issues and is becoming one of the most attractive countries in the region.
Overall, the region's two economic powerhouses – Mexico and Brazil – comprise over 60% of the regional economy and have large domestic demand potential. Private consumption per capita has doubled in the past five years as millions ascended into the middle class. Along with Chile’s attractive business environment, these first-tier markets saw the earliest and heaviest inflows of foreign direct investment from global manufacturers, retailers, commodity producers and financial service firms, among others. They have produced their own global giants in industries ranging from Mining to Food and Beverages. As a result, most sectors are highly developed and hotly contested, making competitive intelligence and anticipation of market needs the keys to survival.
Companies are expanding their footprints with deeper penetration in the maturing mid-sized markets of Colombia, Argentina, Venezuela and Peru, in addition to investment-friendly destinations like Panama. A spike in mergers and acquisitions is causing rapid consolidation and changing playing fields. For effective market entry, acquisitions and joint ventures, careful evaluation must be conducted to establish correct market share and growth projections as well as uncovering any reputational and legal risks. With a collective approach, attractive opportunities can also be found in Central America and the Caribbean, as exemplified in consumer goods, logistics, and electronic payments. "
Read more: http://www.globalintelligence.com/geographies/latin-america/#ixzz1HWv1MxZL
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