South America Economic Forecast

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.

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.

For the economy of South America to survive and thrive, exportation of goods is relied on heavily.  Now, for exchange rate, Brazil is ahead of other nations, being listed at number 7 as the largest world economy, as well as number 2 for the largest in the Americas.  In addition to Brazil’s exports of $137.8 billion in US dollars, Chile and Argentina also have strong exports, reported at $58.12 billion and $46.46 billion respectively.

South America GDP Forecast

Reports for the South America GDP (Gross Domestic Product, Current Prices, US Dollars), each country is unique.  Just as with economic growth, some of the South American countries do better than others do.  For the 2008 GDP (PPP) Purchase Power Parity, Brazil was ranked tenth in the world with numbers at $2,024 billion in US dollars.  However, Guyana was ranked at number 172 with year-end numbers for GDP of $2.73 billion.

Then for GDP in South America specific to per capita, 2009 showed that Chile was ranked worldwide at number 57 with closing numbers of $14,700 billion.  On the other end, Bolivia was ranked at number 125 with closing numbers of $4,600 billion.  Along with the GDP, experts also look at the GNI, which is the Gross National Income, being the sum of value added by resident producers in addition to product taxes not added to the valuation of output.

South America Unemployment Forecast

The South America population is estimated at 371 million and as with other numbers associated with the economy, each country has unique job opportunities and sectors.  For instance, with the South America unemployment rate, the following are the most recent reports per country.

•    Paraguay – 5.60%
•    Peru – 6.90%
•    Chile – 7.00%
•    Argentina – 7.3%
•    Brazil – 7.50%
•    Bolivia – 7.50%
•    Venezuela – 8.50%
•    Uruguay – 9.20%
•    Ecuador – 9.30%
•    Suriname – 9.50%
•    Colombia – 11.20%
•    Guyana – Numbers not available

Regarding the poverty level for the people of South America, according to 2009 numbers, Chile has the lowest percentage at 13.7% while Suriname has unemployment as high as 70%.

South America Inflation Rate Forecast

When experts predict how an economy will move over the years, several factors are considered.  For instance, the South America inflation rate would provide key information to help economists see how each country is doing when compared to another.  Below is the annual percentage rate annually for the countries in South America.

•    Peru – 1.80%
•    Ecuador – 2.20%
•    Brazil – 3.60%
•    Chile – 4.40%
•    Colombia – 5.50%
•    Suriname – 6.40%
•    Paraguay – 8.10%
•    Uruguay – 8.10%
•    Bolivia – 8.70%
•    Argentina – 8.80%
•    Guyana – 12.20%
•    Venezuela – 18.70%

South America Current Account Balance Forecast

Finally, the numbers for the South America current account balance are also critical.  Of course, these numbers also vary for each country although the formula used to develop numbers is the same.  For this, the current account balance includes records for the country’s net trade specific to goods and services, as well as income and current transfers.  Taking these numbers and calculating them on an exchange rate bases rather than terms for purchasing power parity, forecasters can determine accurate numbers for the future.