Reasons Why Your Investment In Latin America Is A Sure Success
Throughout the years, Latin America had been one of the most exciting place to place an investment. With all the opportunities that Latin America has in store for all new foreign investors. They have a lot to offer from amazing incentives for new companies to prosperous natural resources and exceptional human labor. With these reasons, Latin America has been one of the best business option.
As per Latin American Investment Association (LATIA), Latin American countries are expected to obtain global influence in areas such as economical and tourism. Also, they are also expected to expand their resource sectors such as mining, oil and gas, forestry and finance. With more of this Latin America has become one of the best place to place your investment.
Haven’t decided yet? Well here are the specific regions which you should place an investment in Latin America. These are all professionally analyzed and proven based on their economic growth and development.
First is Peru, over the years it has become one of the successful mining industry and have experienced rapid growth. Their mining industry has an accounting for over 50% of foreign currency, 20% of tax revenue and 11% gross domestic product. Peru allows you to have 100% of foreign ownership. Also, they do have minimal capital controls and a just company tax rate. As per the agency of “Promocion de la Inversion Privada en el Peru” (Pro-inversion), there are four reasons why it is best to place an investment in Latin America specifically in Peru.
First point is their macroeconomic soundness. According to statistics, Peru’s GDP as reach a growth of 1.3% from 2015, 4.0% in June 2016. In 2017, Peru’s GDP has an overall 4.3% growth at the year 2017. Next point will be Peru’s favorable investment climate. With Peru’s stable economy having the lowest inflation rates which is 0.7% lower than Chile, Mexico (0.9%), Colombia (1.2%) and Brazil (2.9%). Also, in the past decade Peru has sustained a stable exchange rate. Third point why you should invest in Peru is the country’s Policy Trade Integration. With Peru’s fair business policy who allows owners to be of any nationalities, free movement of capital and freedom to access internal and external credit. Lastly, Peru has the potential sectors for good investment. In particular, their mining sector which is ranked as the third largest worldwide producer of copper, silver, tin and zinc. In Latin America, they are the largest producer of gold, lead, tin and zinc while second largest when it comes to producing copper, diatomite, mercury, molybdenum, phosphate, rock and silver.
Next country in Latin America is Colombia. Colombia is the largest economy within the Andean region with an estimated GDP of USD$3788 in the year of 2013. Also, it is the only country in South America that has coastlines on both Pacific Ocean and Caribbean Sea. Same with Peru, the country also allows full foreign ownership. They also offer limited capital controls, cheap operating costs a fair company tax rate. Colombia is also expected to have a rapid growth of GDP by 2.7%. Surely the country has been doing efforts to make them as one of the best countries to place an investment in Latin America. With over 70% of the current foreign investment in Colombia of United States (32%), UK (20%), Spain (11%) and Chile with 6%. Also, Colombia’s highly qualified workers and low salaries compared to Latin American countries are considered advantages.
Chile is the third country in the list. Chile has been highly rated for its low public debt, secured financial system and reliable institutions. Recently, Chile got the 13th place out of 82 economies as per Business Environment Ranking of the Economist Intelligence Units of year 2014-2016. Also, UNCTAD (United Nations Conference on Trade and Development) reported that Chile was at the 17th place for the largest foreign direct investment in 2015. Along with the statistics, Chile takes third place in Latin America after Brazil and Mexico. The country has also been commended for its stable growth economy.
Last country as the best places to invest in is Mexico. Mexico is Latin America’s second largest economy. It has a population of over one hundred and twenty million people. Mexico’s importance of Western culture has helped a lot of companies to do business in them because of its reliable location for production and manufacturing activities. Also, they produce highly skilled workers that can offer multiple services in numerous industries. Foreign investors has been attracted with the country’s low manufacturing costs and high quality work.