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Ecuador Sited as One of Three Countries to Lead the World’s Economy

Article Summary:

Ecuador, Peru, and Bolivia are the leaders in a list of 26 South American economies which have rapid economic growth (above 5% average) and are expected to lead the world’s economy through 2050, according to a report by HSBC Global Research.

Photo Credit: El Universal

Original Article Text From El Universal via Google Translate :

Peru and Ecuador, among the most grow through 2050

Peru, Ecuador and Bolivia are the South American countries considered in the group of 26 economies that have rapid economic growth (above 5% average) through 2050, according to a report by HSBC Global Research.

The three Latin American states would grouped with African, Asian and former Soviet Union, most notably China, India, Philippines, Egypt and Uzbekistan, which now “share a very low level of development, but have made ​​great progress.”
According to data, Peru, a nation which they call “the star of the region” would climb 20 points in the global economic ranking, ranking number 26, with a Gross Domestic Product (GDP) of $ 735,000 million in 2050, this was $ 85,000 million in 2010 and its per capita income would rise from $ 2,913 to $ 18,940.

In contrast, Ecuador jump 14 points to stand at the position 62 to increase its GDP of $ 24,000 million in 2010 to $ 206,000 million in 2050 , implying also an increase in per capita income of $ 1,771 to $ 10,546.

Last year, the growth of Ecuador’s economy was 7.78%, according to a report of the Central Bank. While Bolivia would move 25 points until the position 71. GDP would be about $ 145,000 million in 2050, in 2010 was $ 12,000 million and its per capita income would reach $ 8,652.

Karen Ward, senior global economist at HSBC, who led the study, said the forecasts were based indicators such as income per capita, rule of law, respect for democracy, education levels and population changes. However, he cautioned that several factors can cause the switch to long-term savings as inflationary pressures and the use of credit.

“The potential of the economy in Latin America has broken out in recent decades as they have managed to tame inflation that hit the economies of most of the years 1970 and 1980″, said Ward.

For the former Minister of Finance, Fausto Ortiz, in the case of Ecuador, the growth will depend on oil price developments and influence foreign investment in the country. “We are not considered likely to attract investment, contrary to what happens in Peru, an external shock oil, could get us the game.”

Unlike this scenario of rapid growth, countries like Cuba, Uruguay and Venezuela, will grow at a slower pace 3.5%, as planned. The study cites that Central and South America will grow at an average of 4.9% in the decade between 2010-20, 4.5% for the period 2020-30, 4, 1% in 2030-40 and 3.9% in 2040-50. “Many places in the world offer very high growth rates. These places are not in the developed world, headwinds facing both cyclical and structural.

These places are in the emerging world, “the bank said in the report. While economic leadership change. China would become the first in the world with $ 25.33 billion, displacing the United States to second place in the ranking. India reach third with a $ 8.16 billion. “The history of emerging markets is just the beginning.

As new emerging force take, emerging economies offer great potential to boost the global economy by 2050 “. Other Countries 43 countries will grow between 3% and 5%. Eleven are from Latin America. Group stable. There are 31 nations that grow less than 3%.

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From El Universal

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