• Categories
  • Archives

In LatAm’s Poor Showing on Share of World GDP Brazil Does Best

Debt, inflation and Asia’s strong economic growth forced Latinamerica’s share of the world’s GDP to drop 1.8 points in the last quarter of a century, according to international consultants based on IMF/World Bank reports.

Latinamerica’s contribution which represented 7.2% of GDP in 1980 dropped to 5.4% equivalent to 2.5 trillion US dollars.
United States with 4.6% of world population (compared to LatAm’s 8%) has a 28% share of world GDP.

Big changes also happened inside Latinamerica in the last 25 years. Argentina which concentrated 27% of the region’s GDP in 1980, dropped to third place behind Brazil and Mexico and in 2005 represents a modest 7.8%.

Chile on the other hand managed to climb 0.7 points from 3.6% of LatAm’s GDP in 1980 to 4.3% in 2005. Chile’s success in spite of its relatively small economy is based on sound economics, fiscal discipline, low inflation and pioneering trade relations with Asia which spurred strong, sustained expansion.

Brazil leads in the region with a GDP share ranking between 35/37%, and Mexico boomed ahead particularly with oil and the 1994 North American Free Trade Agreement encompassing United States and Mexico.

However Latinamerica’s high foreign debt, US$ 763 billion in 2004 is one of the factors that help to explain the region’s lesser participation worldwide.

"The heavy debt burden plus high interest rates diminished the region’s countries capacity to invest, particularly in infrastructure", said Ricardo Amorim from the Latinamerican branch of international consultants West LB.

Asia’s growing participation from 22.5 to 27.6% also influenced the poor performance of Latinamerica.

"Hyperinflation, balance of payments crisis originated in the implementation of certain economic policies also contributed heavily to the poor showing", argues Alberto Ramos from Goldman Sacks.

Mercopress – www.mercopress.com

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

South American Ministers in Brazil for Final Touches to Bank of the South

Economy and Finance ministers from all South American countries, except for Peru and Colombia, ...

Brazilians Can Now Go to Court on the Internet

Brazilian ministers of Justice, Márcio Thomaz Bastos, and Communications, Hélio Costa, and the chief ...

Brazil Blames Cheap US Dollar and Not China for Global Trade Tension

Brazil is thinking about taking additional steps to limit gains in the local currency, ...

Kyly, Brazil’s Cool Kid Clothes Maker Looking for Hot Countries

The company Malhas Kyly, from the southern Brazilian state of Santa Catarina, specialized in ...

Brazilian President, Luiz Inácio Lula da Silva talks about biotechnology

“Never Again Supplier of Raw Material.” Vows Brazil’s Lula

Brazilian President, Luiz Inácio Lula da Silva, signed a decree yesterday, February 8, outlining ...

Brazil’s Prosecutor’s Office Confirms Existence of Vote-Buying Scheme in Congress

In an investigation that ran parallel to the Parliamentary Investigative Commissions (CPIs), the country’s ...

Rio Slum Taken from Druglords Gets a Two-Mile Cable Car System

Brazilian president Dilma Rousseff inaugurated a cable car system in the Rio slum of ...

Brazil’s Lula in Algeria Means Business

The trip by the Brazilian president Luiz Inácio Lula da Silva to Algeria on ...

Brazil Says Its Land Reform Program Is on Target

With less than a month to go to the end of the year, Brazil’s ...

Brazilian Bio Soluções’s Line of Excrement-Run Generators Is a Hit

Brazil has a new line of generators, engines and motorized pumps that, apart from ...