Is Latin America the New Europe?
There is no doubt that the economic balance of the world economy has changed over the last five or six years after the US-led credit crunch that led to the global recession, part one, part two and third?
As a result, the countries of Central and South America, led by Brazil, are now among the strongest economies in the world, and their presence on the world stage continues to grow. There is a very strong similarity between the continuing development in Latin America and the development of Europe in recent years as one of the major superpowers.
European companies flock to Latin America
In the 1990s, Brazil and Argentina were on the verge of economic collapse, with many leading economists calling them a basket basket. These have been decades of recessions, declining living standards, declining expatriate numbers and declining investment in the region. By all accounts, Latin America has been written off by many companies, governments and economists. How wrong they were!
In recent months we have seen a significant increase in the number of European countries wishing to invest in Latin/South America. This, in addition to North America’s continued investment in the region, has led to significant economic growth that looks even better than the ongoing global turmoil. These investments in the region will continue in the short, medium and possibly longer term, as the euro may be in a state of free fall for many years.
Expats watch Latin America
The number of emigrants moving to Latin America/South America has increased significantly since the global recession, much of which has been avoided by Latin America and Australasia, and will continue for the foreseeable future. It is the standard of living, economic growth, prosperity of the region and the fact that there are many opportunities for those who want to start a new life. The influx of expatriates to countries such as Brazil, Mexico and others has accelerated rather than decreased in recent months, surprising many.
The growing number of expats in Latin America is likely to attract more and more people to the region, increase demand for retail services and products, and help stabilize public finances in all areas. It’s actually a win-win situation.
Comparisons with Europe of the past
Europe has not always been the financial power it was before the collapse of the euro. Indeed, there are some similarities between the collapse of 1990 of people like Brazil and Argentina, who technically failed to meet their debts but received assistance from the IMF. We can see history repeating itself with the advent of Latin America as a new economy of a new era as Europe and North America continue to struggle.
Financially, Latin America is now one street ahead of Europe, and indeed, the instability of the U.S. economy is also strengthening Latin America’s position.
Unsurprisingly, more and more foreigners are seeking to move to Latin America, given the region’s continued economic prosperity. We have people like Brazil who are at the forefront of the region and are also creating big waves on the world stage. Mexico is entering a new political era, taking over drug lords and for some time supporting a growing economy. These situations are repeated over and over again in Latin America, at which point the region will be the main force in the ongoing global economic downturn.