Economic Growth in Latin Markets
Which economy grew faster over the last seven years? A) President Hugo Chavez's Venezuela, famous for its forced nationalizations and "21st century socialism," or B) Chile, long renowned as a capitalist paradise for investors. It might surprise some outsiders to learn that the answer is actually A. In recent years, commodities prices have dictated growth in Latin America more than any other factor, meaning that countries could trample on businesses but still grow briskly as long as they exported plenty of raw materials such as oil and iron ore to China and elsewhere.Latin America is on a tear, and within it, economies that are not dependent on commodities, Chile, Peru and Colombia, seem to be driving growth. While business climate is certainly improving, certain sectors like Pharmaceuticals are facing trouble with each of these economies embarking on controlling the health care costs by implementing price controls and access hurdles.