SOUTH AMERICA

B Y : G U T H R I E M I T C H E L L

M B A 5 1 3

ECONOMIES OF SOUTH AMERICA

Comprises around 382 million people

Living in twelve nations and three territories.

Contributes 6% of the world's population

GREAT ECONOMIC DEVELOPMENT

Since the 1990's, especially...

• Venezuela, Columbia, Argentina, Uruguay, Peru have grown by over 8% per annum.

• Brazil's economy, on the other hand, is expected to grow by a more sluggish pace in the near future.

• South America relies heavily on the exporting of goods.

BRAZIL

Largest Country

Brazilian Economy is 7th largest (by nominal GDP)

One of the world’s fastest growing economies

Has large and developed agriculture, mining, manufacturing, and service sectors, in addition to the large labor pool.

Brazilian exports are booming! Aircraft, auto’s, ethanol, textiles, corned beef

BRAZIL CONT’D

Growth large part due to a global boom in commodities prices with exports from beef and soybeans soaring.

Forestry, logging and fishing accounted for over 5% of the GPD in 2007.

“Positioned for distinction” 3rd largest exporter of agricultural products in the World

Industry Auto, steel, petrochemicals, computers, aircraft and consumer durables

account for over 30% of the GDP

10th largest energy consumer with much from renewable energy from hydroelectric and ethanol.

ARGENTINA

Abundant Natural Resources

Export oriented agricultural sector

Subject to high inflation – biggest weakness

Columbia• Grew latter part of the 20th century• Tourism

INCREASING OPPORTUNITY

Many professionals are moving from Europe to Brazil…

This picture is of Spanish architects María Palencia and Andrés Velarde both found jobs in Rio de Janeiro designing apartment complexes and other projects.

www.online.wsj.com

CONCLUSIO

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