The global narrative around South America suffers from prejudice. Those from the more developed worlds have created this picture of South America as a ‘lesser’ America, when in fact, it is a world of untapped potential measuring in worth unaccounted for yet. If you are an investor and want to explore new territories beyond the mainstream favorites, Europe, China, and the United States, you should consider venturing into the South American market.
Of course, some economies are not performing very well for various reasons. But, some of the rest have managed to sail through the tumultuous years of the pandemic and projected themselves as possible frontrunners in the region’s investment race. We are going to discuss these countries, which the experts believe are brilliant avenues to invest in. In this article, I have mentioned five places where you should invest.
One of the most popular countries in the region is Brazil. Not only does it maintain one of the highest GDPs in the continent, but it also exercises considerable sway on international affairs. While Brazil invited a lot of negative attention in the past few years for political reasons and otherwise, it still retains its number one spot for investment in the region. The harrowing impact of the pandemic surely could have pushed the economy into a deadly nose-dive, and many feared that such would be the eventuality. However, several reforms helped the country rise and incentivize economic activity. These reforms made it easier for investors, especially foreign investors, to trade and conduct business.
Chile is a beautiful country with a splendid local culture and bustling opportunities. It presently has the second-highest GDP per capita in the region, and projections suggest that the numbers will soar in the near future. The Chilean response to the pandemic had been aggressive and saved the economy from an unprecedented recession. The OECD Economic Survey praised the country’s swift reaction. Chile introduced stimulus packages to ensure job security and attract businesses. Today Chile has fully recovered financially from the unexpected changes that the pandemic has caused worldwide.
With the highest GDP per capita in the continent, Uruguay stands among the most successful economies in the region. It is one of the few countries known for its generous social expenditure on cash benefits, tax breaks, and subsidized provision of goods and services. Reports suggest that despite the massive impact on the economy due to COVID-19, the country introduced swift measures to mitigate the effects as much as possible. The inflation rate remains high but has significantly dropped over the past few years. While it is battling a high unemployment rate, sources say that active measures have helped control the spillover.
There is no gainsaying that drug trafficking is a grave and persistent problem in Colombia. The clout held by local mafias and drug lords affects immensely in eradicating corruption and violence in the country. That being said, the country has roped in support of the United States and launched what is called ‘Plan Colombia.’ It aims to rein in the drug rackets and internal conflict, push the local economy and encourage democratic operations in the country. Focus areas are education and infrastructure. Also, it has introduced several reforms that refashioned export strategies and enhanced security measures.
The beauty of Argentina lies in its cosmopolitan culture that embraces everyone and anyone. It is one of the largest economies in the world, but it suffered a significant contraction in 2020. However, recent projections suggest that the economy has recovered. The Argentine economy is reportedly witnessing a rise in private consumption and increased levels of investment. High commodity prices have encouraged higher exports. Employment levels have improved even though the looming high poverty rate is a cause of concern. From the point of view of investment, you should consider exploring the opportunities here as reforms have shown positive results, and investors are pumping in their money.
Source: CEO World