Since 2003, Latin America has experienced a period of resurgence, with strong growth, low inflation and improved social policy outcomes. Cheap and abundant foreign financing and strong demand for the region’s commodities, particularly from China, have been extremely positive for the region. But all that could change as advanced economies return to health and capital flows back to the West.
Rapid economic growth in Latin America, backed by more inclusive social and economic policies, has seen the region’s middle class grow by nearly 50 percent over the last decade, said a World Bank report released on Tuesday, with the size of the region’s middle class population now rivalling the number of poor people for the first time in its history.
For South America, 12 nations and 3 territories make up the economy. Regarding the health of the economy, reports show that since 2007, solid growth has been experienced for many of the nations, primarily Colombia, Argentina, Venezuela, Peru, and Uruguay. In fact, economic growth is shown at more than 8% per annum. Along with nations in South America that are doing well, others are slower to progress, which includes Brazil.
Brazil on Thursday suspended retaliatory measures against U.S. goods over a cotton subsidy dispute,
freezing until 2012 a long-running row that has demonstrated the South American nation’s trade clout.
The government said a deal agreed between the two countries in April
to head off up to $829 million in World Trade Organization-sanctioned retaliation against U.S. goods
would stay in place until a new U.S. farm bill is passed.
