South American countries have largely rebounded from the recent global economic downturn. Among emerging markets, the South America region ranks second behind Asian countries in terms of gross domestic product growth, comprising almost 18 percent of the total emerging market GDP.  The region is led by Brazil, Venezuela, Argentina, Colombia, and Chile, which all show signs of consistent economic improvement.  After decades of boom-to-bust behavior, South American countries are finally emerging with more solid, diverse economies, helped by large natural resource reserves and improving fiscal discipline.

Schulze Global views the South American region as an increasingly friendly forum for global competition, with many countries effectively stimulating their economies through sustainable policy efforts.  South America has moved away from the protectionist policies that governed the 1990s, and have begun instead to reap the long-term benefits of globalization.


Entering the Global Arena

Once generally thought of as under-developed, South America’s growing industries, large reserves of raw materials like oil and minerals, significant population, and increased foreign investment from China, Europe and the U.S., have assisted the continent in comprising a significant portion of emerging market growth. Realizing paths toward sustainable growth involves stable governing policies, and many South American countries have responded positively.  According to the 2011 Index of Economic Freedom, all South American countries increased their ranking except Ecuador. Countries that score well generally demonstrate a commitment to individual empowerment, non-discrimination and the promotion of competition.

Additionally, South America is improving regional political and economic ties which are bolstered by increased logistical infrastructure throughout the region.  with a good example of this is the 2011 creation of the Integrated Latin American Market, which is a merging of the stock markets of Chile, Colombia and Peru.  Such multilateral actions help increase regional liquidity as well as international investor confidence.

Significant promise lies in the region’s consumer goods sector. The increased wealth in the region has produced a notable rise in domestic consumption. Growing economies and rising wages mean that many South Americans can now purchase consumer goods that were previously out of reach.  Growing populations of young workers are increasing the earning and spending power of the region, and this in turn is driving domestic growth, urbanization and industrialization.