Market Latin America

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Mexico's economy caught in the global slowdown.
In its September 27, 2007 edition, The Economist (London) observed that when the economy of the United States (US) slowed in 2001, Mexico's economy went down and stayed down for the two succeeding y . . .

The Latin American Mortgage Market.
Because of the close ties between the United States (US) and the Latin American region, the question naturally arises, `How will the difficulties with the sub-prime US mortgage market and associated . . .

A perspective on Argentina's recovery.
Since its record breaking default in 2001, and the ensuing economic collapse, Argentina's economy has grown 50 percent. "In the process, more than 11 million people, in a country of 39 million, have . . .

Costa Rica's growth slows.(Brief article)
In an undated report posted on the website of Central America Today, a project of the University of San Pedro Sula (Honduras), the average growth rate of Costa Rica's Index of Economic Activity was . . .

Venezuela's free press.(Brief article)
Although Market: Latin America takes great pains to present objective analyses of the status of the world's various market economies, we are occasionally caught, as they say, flat footed. Such was t . . .

Brazil prices and inflation studied.
Brazil has had a difficult time managing inflation. The annual increase in the rate of inflation fell below four digits only in 1995. Low double digits were achieved in 1996. As recently as 2003, th . . .

Consumer spending rises in Peru.
Peru's consumers are in an increasingly favorable position. The country's economy is doing well--has been doing well for some time--and the free market policies of Peru's new president appear to be . . .

Chile's inflation increases sharply.
Aside from the fact that Chile's economy is regarded as one of the most open in the Latin America region, Chile's consumers benefit from the stability of the country's banking system. A September 7, . . .

Constraints arise for Ecuador's radicalism.
To read the alarming reports about Ecuador in the international financial press, one would think that the country was on the verge of collapse. Certainly, the tone of the rhetoric used by the curren . . .

Colombia's economic agenda must expand.
With foreign investors lining up to shake the current Colombian President's hand, and venerable institutions such as Fitch Ratings complementing the country's progress, a balanced view of the situat . . .

Chilean consumption boosts growth.
On July 19, 2007, the International Monetary Fund (IMF) released the results of its most recent consultation with the Chilean government. The posting on its website said, "The Chilean economy is enj . . .

Guatemalan expatriates mistrustful.(Brief article)
Security and personal safety are nearly overwhelming challenges for the Guatemalan government. Since the end of the 36 year long guerrilla war in 1996 little progress has been made to assure the per . . .

An ominous sign from Venezuela.(foreigners are invading the country)(Brief article)
Venezuela's President has ordered officials to monitor the public remarks of foreigners visiting the country and has put foreigners on notice that if they criticize Venezuela or its officials, the c . . .

Uruguay financial crisis remembered.(Brief article)
The summer of 2007 is the five year anniversary of the resolution of the 2002 financial crisis in Uruguay. As the crisis developed, the Financial Times (London) on July 29, 2002 said that Uruguay "w . . .

Pharmaceuticals.
July 31, 2007 research published by The Espicom Group (Chichester, UK) says that the value of the Latin American pharmaceutical market is us$41-billion, "and growing fast." By 2012 the market will h . . .

Panama's macroeconomic performance improves.
Panama's legislature approved a free trade agreement with the United States (US) on July 11, 2007, an occasion marked by non-violent protests by approximately 400 "leftists and farmers opposed to th . . .

Dominican Republic growth to moderate.
The Dominican Republic (DR) likes to characterize itself as the fastest growing economy in the Latin American region. Unquestionably, the country-and its consumers-have done well in recent years. . . .

Chile experiences accelerated growth.
The NASDAQ website picked up a June 21, 2007 story from the Dow Jones wires reporting that the Chilean Congress had approved a us$290-million measure to infuse cash into Transantiago, the transit ag . . .

Urban microcredit in Paraguay.
Microcredit is established around the world as a dynamic development tool creating viable markets of every kind where none have existed. A microcredit program called ACRES, in one of the poorest nei . . .

Mexico's structural problems persist.(Brief article)
A June 2007 issues brief by the Center for Strategic and International Studies (CSIS) says that a recent public opinion poll concluded that the number one problem on the minds of Mexican citizens is . . .

Brazil feeling the result of climate change.
Climate change is having an impact on Brazil's vast agricultural sector and the government is planning for, "a dramatic geographical reorganization of the country's agricultural production." Recent . . .

Jamaica's economy is improving.
The Planning Institute of Jamaica (PIOJ) estimates that in the first quarter of 2007, the country's GDP grew 2.0 percent when compared with the same period in 2006. Construction and commodities pro . . .

Ethanol.
The world demand for energy is such that even seeming improvement in potential supply solutions creates political uproar. Such is the case with ethanol. And nowhere is the uproar louder than in the . . .

Bolivia is stable but uncertainty persists.
The situation in Bolivia as of mid-2007 is clearly illustrated by the graph above. Both inflation and Purchasing Power Parity (PPP) per capita income are headed down. Growth in the rate of inflation . . .

Brazil's economy is under achieving.
Among the original BRIC countries (Brazil, Russia, India and China), which have been praised for their speedy development and steady march toward eventual dominance of the global economy, Brazil has . . .

A new round of Venezuelan nationalization.
To no one's surprise, Venezuela's President has taken the last step and announced complete withdrawal from relationships with the International Monetary Fund (IMF) and the World Bank. According to a . . .

ATMs yield clues to Argentine growth.
An interesting clue to the stability of consumer spending in Argentina emerges from recent statistics on the expansion of ATMs in the country. ATM use has been growing along with the economy, but on . . .

Growth slows slightly in Peru.(Brief article)
Peru's consumers-at least in the country's cities-deserve some of the credit for a GDP growth record in 2006 of 8.0 percent, according to both the International Monetary Fund (IMF), and Peru's Natio . . .

Nicaragua's institutions are shaky.(Brief article)
On April 3, 2007, the European Commission (EC), the executive branch of the European Union (EU), published a "Country Strategy" paper on Nicaragua, a long, closely reasoned document outlining the co . . .

Positive outlook for Colombia spending.(Brief article)
A May 31, 2007 release by Colombia's National Administrative Department of Statistics (DANE), reported that passenger car sales increased 18.6 percent in the first quarter of 2007 when compared with . . .

Corn.
Corn, or maize as it is called locally, is vital to Latin American food security. Food security in the region is routinely threatened by environmental shocks. Drought is common, and in the northern . . .

Does Costa Rica deserve its positive reputation?
For some time, Costa Rica has had a reputation of being one of the most stable countries in the Latin American region. And the graph above-showing the rate of growth of per capita income-displays a . . .

Panama: Finances strong, institutions weak.(Statistical data)
As with many developing economies in the world, and particularly in the Latin American region, looks can be deceiving. Panama's macroeconomic statistics are solid, if not promising. The widening of . . .

Mexico's slowdown will not be dramatic.
The changes in Mexico's economy for the remainder of 2007 are likely previewed in forecasts of light vehicle sales. According to an April 11, 2007 report by Banamex, Mexico's biggest commercial fina . . .

Argentina inflation reports questioned.
A major scandal erupted in Argentina in mid-April 2007 with allegations the National Institute of Statistics and Censuses (INDEC) under reported March 2007 inflation statistics. In an April 19, 2007 . . .

Chile shows early signs of resurgence.(Brief article)(Statistical data)
Chile is on the way to rebounding from an economic slump that saw GDP growth decline from 6.0 percent in 2004 to a still strong 5.7 percent in 2005 to an anemic 4.0 percent in 2006. Statistics are a . . .

El Salvador's growth is sustained.(rise in gross domestic product rate)(Brief article)
Some of the basics are falling into line in El Salvador. By basics we mean rudimentary processes in the collection of taxes and distributing welfare grants to the poorest of the poor. A March 13, 20 . . .

Venezuela prices drop.(cuts in value added tax)(Brief article)
Nowhere in the Latin American region are prices rising faster than in Venezuela. So, April 2, 2007 Bloomberg reported news of a March 2007 decline in prices-the biggest monthly decline since at leas . . .

Male personal care products.
Within the last two years the market for male personal care products in Latin America has begun expanding, according to an April 2007 review of the market by the research firm InfoAmericas (Miami). . . .

Uruguay's volatile retail sector grows as GDP slows.
Even though Market: Latin America Statistical Analysis (MLASA) has estimated the annual percentage changes in Uruguayan retail sales for 2005, 2006 and 2007, there is a high degree of confidence tha . . .

Inflation looms in Colombia.
Worries about government spending and inflation dominate the analysis of Colombia's economy for 2007. In January 2007, the Los Angeles Times (Los Angeles) was writing about the "brisk" growth of t . . .

Not much progress in Honduras.(Country overview)
Here is the kind of severe weather event that the Honduran economy cannot deal with without serious disruption. "Overflowing rivers in Honduras caused by intense rain isolated more than 20,000 peopl . . .

Living with high interest in Brazil.(Market overview)
When a Brazilian family makes a major purchase, no thought is given to what the interest rate might be. The only concern is the monthly installment payment. Can it fit into the family's budget? Th . . .

Mexican consumers: not too confident.
Mexico's consumer confidence index declined somewhat from 104.3 points in January 2007 to 103.6 points in February 2007, a March 6, 2007 Reuters dispatch said. The Bank of Mexico (Banixco), the coun . . .

Flooding hits Bolivia.
Bolivia has suffered an environmental shock that has destroyed some key elements of its hard-won infrastructure, and is forcing the government to lower its growth forecast for 2007. On March 3, 2007 . . .

Unsettled situation in Ecuador.
The situation in Ecuador since its new leftist president took office in January 2007 is unsettled. The new president has high approval ratings but his charisma does not extend to the country's busin . . .

Direct Response Television (DRTV).
Direct response advertising is relatively new to the Latin American region. According to a December 20, 2006 analysis published in Electronic Retailer Magazine (Arlington, VA USA) direct response ad . . .

Unemployment falls as Chile's economy matures.
The graph above illustrates an interesting development in the Chilean economy. Starting around June 2006, the unemployment rate (the yellow line in the graph above) began a steep decline, which cont . . .

Consumer wrath riles Mexican economy.
Reports emanating from Mexico seem to take an almost jocular attitude toward a serious increase in the price of tortillas. Tortillas are one of the country's most important foods, and according to a . . .

Guatemala gasps under a pall of violence.
If Rigoberta Menchu wins the presidency in Guatemala in elections tentatively set for September 9, 2007, she will be only the second head of state in Latin America counted among her country's indige . . .