Brazil and Chile are leaders in South American growth

April 8, 2006

Over 10,000 economic development professionals attended a conference in Brazil on April 3- 5 sponsored by the Inter-American Development Bank. The Bank seeks to improve economic growth in Latin America through funding micro-businesses, providing research to help set policy, and guiding economic development. This was their fourth annual meeting, and the conference seminar topics ranged from protecting the Amazon Basin to technological innovation and competitiveness.

Of note, the conference singled out Brazil and Chile as being examples of governments which support economic growth. Brazil, at 2.4% GDP growth in 2005, has recovered from a huge debt by creating a more transparent and decentralized governments, incorporated market forces, while balancing use of its natural resources. Chile, at 6% GDP growth in 2005, has followed a more conservative and stable path of economic growth based on more limited natural resources.

What It Means:
South America is continuing to work to achieve fiscal solvency, local pride, and help for the poor in their nations. Debt repayment to the IMF, and the active support of the Inter-American Development Bank, shows early successes.

Action Steps:
Make sure your well-diversified portfolio includes some companies from Brazil and Chile.

Source: Inter-American Development Bank

Go to Conference Notes or Report on Brazil and China