Anguilla (top)
In recent years, GDP has grown at a double-digit pace though the pace
is expected to slow as the global economy weakens. Financial services,
tourism and construction have been driving forces behind growth but
foreign investments in land are also growing .
Argentina (top)
Since 2002, Argentina has had the most growth in Purchasing Power
Parity (PPP) among Brazil, Chile, and Mexico. The growth is predicted to
continue through year 2010 .
Argentina is the second largest country in Latin America and occupies most
of the southern portion of the American continent. Its total area is about
1,068,300 square miles (about the size of the U.S. east of the Mississippi
River). Argentina is bordered by five countries - Chile to the east,
Bolivia and Paraguay to the north, and Brazil and Uruguay to the northeast
.
In Argentina, farmers benefit from a favorable climate, fertile soils and
the large investments farmers in new technologies and techniques. Cattle
ranching has been a main economic base for the residents of the plains
(Pampas) for over 200 years. Nearly all of the cattle raised and
slaughtered in Argentina are consumed domestically .
Cheap credit drives a boom in consumer spending. Favorable global
commodity prices and the emergence of Asia as a key export destination
have increased earnings from primary and agro-industrial exports.
Tourism is traditionally a big earner of foreign exchange. It provides
employment for approximately 10.1% of the work force and presently
accounts for about 8.5% of GDP .
Aruba (top)
Aruba has one of the highest per capita incomes in the Caribbean
region. Per capita income has more than doubled in the past two decades,
so that Aruba is now one of the richest islands in the Caribbean .
Offshore banking, oil refining and storage are the other mainstays of the
economy. Supervision and regulation of the financial sector has been
strengthened in line with the recommendations of the recent Offshore
Financial Sector assessment. Recent tax reforms have made the economy more
investment friendly.
Authorities have agreed to turn the telecommunications company into a
private law company and introduce competition in the mobile phone market.
This creates opportunity for foreign investment and market expansion.
Tourism is a major earner of income and provides the most employment
opportunities. It contributes more than half of GDP and around 80% of
non-oil export revenues. This sector continues to need foreign investment
for infrastructure purposes .
Aruba is home to the one of the largest desalination plants in the world .
The island has no fresh water supplies and every liter has to be imported
or is the product of desalination. The plant continuously seeks further
foreign investment.
Bahamas (top)
The Bahamas has one of the highest per capita incomes in the western
hemisphere.The tourist industry is the heart of the economy, accounting
for a third of GDP .
There is no income or corporate tax.The degree of competition is limited
and reforms, particularly in the labor market, are needed.The business
climate is relatively attractive but seeks further foreign investment to
develop the country.
Barbados (top)
Barbados has about 2.9 million barrels of proven reserves and produces
small amounts of natural gas. The country plans to expand production to
3,000 barrels per day in the next few years and has begun to employ
horizontal-drilling techniques. The island, along with the Dominican
Republic, Haiti and Jamaica, is party to the San Jose pact under which
Mexico and Venezuela supply crude oil and refined products on favorable
terms .
Liberalization of the capital market is also expected in order to bolster
capital inflows and is part of the Caribbean's effort to create a single
market. The international business sector contributes around half of all
government revenues from corporate taxes. The authorities hope to boost
competitiveness by reducing income tax rates.
Belize (top)
Agriculture is the dominant sector in Belize, accounting for 21% of GDP
and employing 30% of the workforce. Coca, citrus, sugar cane, fish,
cultured shrimp and fruit are the major products, while bananas, citrus
fruits and sugar cane are grown for export. Sugar is the chief crop,
accounting for more than one third of exports. Officials hope that citrus
production will be a major foreign-exchange earner in the future . This is
an opportunity for foreign investment and market expansion.
The tourism industry, which is already a major source of foreign currency,
has great potential, though it needs investment and better planning for
foreign sources.
Bermuda (top)
Bermuda has one of the highest per capita incomes in the world, having
successfully exploited its location by providing financial services and
luxury tourist facilities. International business drives Bermuda's
economic success, with insurance, reinsurance, mutual fund management and
administration dominating .
Bermuda is one of the world’s richest countries. The country realizes
around 25% of its GDP from international business. There are more than
twelve thousand foreign companies .Companies pay no tax on their profits
or their investment income, allowing them to build up reserves for future
losses more quickly and making it more attractive to foreign investment
Bermuda realizes around 25% of its GDP from international business. There
are more than twelve thousand foreign companies. One-third of the
workforce is non-Bermudian and that percentage has been rising over time.
Manufacturing tends to center on perfumes, flowers and pharmaceuticals .
Tourism accounts for about 14% of GDP with more than 80% of visitors
coming from North America. Tourism is expected to show growth of around
8.8% of GDP in 2009 .
Brazil (top)
The country is a member of Mercosur, the trade bloc consisting of
Brazil, Argentina, Paraguay and Uruguay.
Brazil, the largest country in South America, occupies some two-thirds of
the continent's entire Atlantic coast . It is bordered by Argentina,
Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname,
Uruguay and Venezuela.
By 2020, 41.2% of the country's population will be under the age of 25.
This is good news for beauty manufacturers as consumers in this age group
are far more likely to experiment with new personal care products than
their elders. By 2013, Brazil's beauty and personal care market will be
worth over US$36 billion .
Between the 1970’s and 1980’s there was a rapid increase in births. With
the majority of the Brazilian population currently under age 40, there is
an increasing demand for items such as housing, home appliances, home
improvements.
Brazil has one of the largest populations in the world with over 194
million people in 2008. This provides a large labor pool. Presently,
Brazil's large and relatively skilled population is making it an
attractive investment destination, with technology and skills transfer
building up its domestic human capital.
Brazil has an abundance of mineral deposits such as bauxite, iron ore,
manganese, chrome, lead, zinc, tungsten and nickel. Most importantly,
Brazil is the largest producer of high grade iron-ore in the world and it
is the country's largest export product, accounting for 5% of the total
value of mineral exports. Brazilian company Companhia Vale do Rio Doce
(CVRD) is the world’s largest iron ore exporter and its largest producer.
Brazil has a vibrant agricultural sector, driven by increases in both
productivity and in cultivated area. The country presently has 152 million
acres under cultivation but the government claims that this can easily be
more than doubled. Brazil produces 40% of the sugar traded on world
markets and output is increasing by nearly 20% per year. Brazil is also
the world's top producer of orange juice and coffee, and ranks second in
world production of soy and meat (beef and poultry) and third for fruits
and corn. Altogether, agro-business accounts for over a quarter of total
GDP .
Investors plan to spend more than US$12 billion over the next five years
to erect and expand ethanol plants. The government believes it can
increase ethanol production from the annual level of about 18 billion
liters today to close to 200 billion liters by 2025. Producers have
invested heavily in expanding ethanol capacity.
Brazil's industrial base is one of the largest and most diversified of any
emerging economy. The country's big manufacturers include producers of
automobiles, consumer electronics, computers and software, and heavy
industries. Today, the country is the world's fourth largest carmaker.
Brazil has 12.6 billion barrels of oil, the second largest oil reserves in
South America. Proven crude oil reserves have increased significantly
following a number of oil discoveries offshore in the Campos Basin. Oil
production has also risen steadily in recent years. As a result, Brazil is
expected to become an oil exporter in the near future . The
government-owned oil company, Petrobras, plans to spend US$39 billion on
exploration and production upgrades through 2011.
British Virgin Islands (top)
The country is one of the world's principal offshore financial centers.
Financial services are the fastest-growing industry in the country.
Together with banking and insurance, financial services account for a
significant portion of GDP.
The government has introduced a zero income tax regime.. Other incentives
include no capital gains tax; no estate duty; no dividend; no withholding
tax; no capital transfer tax and no death duties.
The British Virgin Islands is one of the wealthiest countries in the
world. It is highly dependent on tourism, which generates about one-third
of GDP .
Bolivia (top)
Bolivia is an associate partner of the Mercosur and a member of the
Andean Pact. Owing to these arrangements, the country is becoming an
increasingly important transport hub.
Increased exploration activity and investment by oil companies have
rapidly increased Bolivia's proven oil reserves, which presently amount to
440 million barrels. The Brazilian state-owned oil company Petrobras holds
41% of the country's proven oil reserves however the company seeks foreign
investment . .
Buenos Aires, Argentina has agreed to pay 50% more for Bolivian natural
gas and the two countries have signed a deal to triple export volumes. The
government has also renegotiated contracts with the major oil companies
operating in Bolivia. Foreign oil companies invested US$900 million in
2008 .
In 2005, Congress approved a new Hydrocarbons Law that levies an
additional 32% tax on oil and gas production at the wellhead, on top of
the existing 18% royalty. The law also calls for the compulsory conversion
of existing contracts to the terms of the new law .
Soybeans are a major cash crop, along with wood and sugar. The country
seeks further foreign investment to development this market.
Bolivia is the world's largest producer of tin and has deposits of copper,
lead, silver, zinc, antimony, wolfram and gold. Government officials also
claim that Bolivia possesses the world's largest reserves of lithium. They
predict the country will earn large profits as automakers push to develop
electric cars that will run on lithium ion batteries. A pilot plant to
extract lithium will begin operation in 2010. Another major project to
extract iron ore deposits is also underway in south-eastern Bolivia. The
site is estimated to hold 40 billion tons of iron ore, the largest
untapped source in the world .
Cayman Islands (top)
The Cayman Islands are the largest offshore banking center in the world
with 600 banks and deposits worth US$500 billion.
Tourism is the main source of income in the Cayman Islands. The sector
accounts for about 70% of all economic activity and employs one-third of
the workforce. There are more than 100,000 visitors in a typical year. A
majority of tourist arrivals (close to 90%) are passenger visitors from
cruise ships. The Cayman Islands' currency is often stronger than the US
dollar, a factor which periodically impacts on the tourism sector.
There are no taxes in the Cayman Islands: government revenue comes from
customs duties, stamp duty and annual fees levied on corporations. More
than 80% of the economy is service-based, principally financial services
and tourism. The number of registered companies is approaching 60,000. The
figure represents one-and-a-half companies per person. The island also has
more than 600 banks and trust companies. About 90% of all food and
consumer goods must be imported.
Chile (top)
Chile currently holds a number of free trade agreements (FTAs) with
various countries, such as Canada, Mexico, South Korea, the United States,
as well as with the European Union. The FTA with the US took effect in
2004, and will lead to completely duty free bilateral trade within 12
years. Chile has one of the most open trade regimes in the world. The
uniform applied tariff rate for virtually all goods is 6%.
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
Chile has the highest per capita private final consumption expenditure in
South America. By 2010, the GDP of Chile will be US$9,589.
Chile’s economy depends heavily on its mining sector which accounts for
40% of the country’s export income. Chile’s Codelco, is the world’s number
one copper producer and Chuquicamata, second largest copper mining complex
in the world, is expected to produce 565,000 tons of copper in 2010.
(Reuters)
Chile occupies the greater part of South America's Pacific coastline, with
Argentina to its east over the Andes mountains, and Peru and Bolivia to
the north. This facilitates the ease of trade and transportation.
Policy makers have also been trying to channel more capital into
non-traditional areas such as seafood and wine. Wine exporters are
gradually becoming more competitive while the country's sheep farmers plan
a big expansion to capture a larger share of foreign markets.
Colombia (top)
When the Colombia Free Trade Agreement (FTA) with the United States
enters into force, Colombia will immediately eliminate most of its tariffs
on U.S. exports, with all remaining tariffs phased out over defined time
periods. U.S. firms will have better access to Colombia's services sector
than other WTO Members have under the General Agreement on Tariffs and
Trade. This FTA is sometimes referred to as a Trade Promotion Agreement
with the two countries.
Colombia, mining, mainly coal and oil, is one of the country's most
important sources of exports. Colombia completed the privatization of its
coal sector in 2004 with the closing of Minercol, the former state-owned
coal company. The largest coal producer in the country is the Carbones del
Cerrejon consortium, composed of Anglo-American, BHP Billiton, and
Glencore. It is likely that Colombia’s coal production will continue to
increase in coming years, as exploration and profitable developments
continue throughout the north and interior of the country. Oil is the
major legal export commodity of Colombia. The country has 1.45 billion
barrels of proven oil reserves. These deposits represent the fifth-largest
in South America . An ambitious investment program in existing facilities
is underway.
The banking system has undergone significant privatization since the last
financial crisis in 1999. Only one state-owned bank remains in operation.
Corporate income taxes have been cut and other small taxes eliminated.
Structural reforms continue to advance as authorities strengthen the
financial system. More consolidation through mergers and acquisition is
expected.
Colombia forms the geographical link between Central and South America and
creating ease of trade and transportation. Meeting the Isthmus of Panama
in the west, it is bordered on the south by Ecuador and Peru, and on the
east by Venezuela and Brazil, and has coastlines on both the Caribbean and
the Pacific.
Costa Rica (top)
In 2005, the US Congress approved establishment of the Central American
Free Trade Agreement (CAFTA). CAFTA confers benefits providing disciplines
for the non-discriminatory treatment of investors, dispute resolution,
protection of intellectual property rights and other areas.
Oil is supplied primarily by Mexico and Venezuela under the auspices of
the San Jose Pact and the Caracas Energy Accord.
Costa Rica is very open to foreign investment and a favorite choice for a
number of high-tech companies. A comprehensive tax reform has been under
consideration. Negotiations on a free-trade agreement with China are
underway and could lead to further market expansion and foreign
investment.
Agriculture employs nearly half the work force. Approximately 60% of the
coffee crop is regarded as “top quality”, though only 6% of world
production meets this definition. The country is the world's second
largest exporter of bananas. There has been some progress in agricultural
diversification and farm exports have risen. Agricultural production has
shifted from rice, beans, and yellow corn for domestic consumption to the
highly successful production for export of pineapples, melons,
strawberries and winter vegetables .
Tourism is the country's largest industry, employing more than 13% of the
work force. Eco-tourism accounts for nearly 40% of the industry's revenues
in a typical year .
Costa Rica exports electricity to Nicaragua and has the potential to
become a major electricity exporter if plans for new generating plants and
a regional distribution grid are realized. Other major industries include
the production of electronic components, food processing, textiles and
apparel, construction materials, cement and fertilizer.
Dominica (top)
The move to a value added tax has been accompanied by the elimination
of the consumption tax, the sales tax, the hotel occupancy tax and other
minor levies. On the revenue side, the tax base has been broadened. The
social security system is being reformed and a hike in contribution rates
has been imposed.
Authorities are working to reduce the cost of doing business are focused
on easing infrastructure constraints and streamlining business procedures.
The government has also made several moves to bolster the efficiency of
the financial system by restructuring state banks and strengthening the
supervision of credit unions. These moves should help to boost
productivity and encourage competition.
Most industrial enterprises are geared to the processing of agricultural
raw materials: rum manufacture is a major activity. There are also fruit
canning plants, tobacco processing sheds and plants making soap and other
light products.
Agriculture generally accounts for almost 30% of GDP and employs more than
two-fifths of the labour force. The main agricultural product is bananas
although limes, oranges, grapefruit, copra and bay oil are also produced
for export. Dominica exports 25-35 tonnes of bananas per year .
Dominican Republic (top)
In 2005, the US Congress approved the establishment of the Central
American Free Trade Agreement (CAFTA) which includes the Dominican
Republic.
The Dominican Republic is one of the main centers of clothing “assembly
for export”, or maquiladoras, and depends mainly on the US market for
sales of both clothing and textiles. Clothing producers have suffered
greatly from Asian competition and termination of the Multi-Fibre
Agreement (MFA).
The island is the US's seventh largest export market in the Western
Hemisphere and a major destination for US foreign direct investments.The
government has recently begun to implement tax reforms aimed at
simplifying excise taxes and reducing tax evasion. New fiscal policies,
including the planned sale of government-owned assets equivalent to 6% of
GDP, should help to reduce public debt. The government also intends to
raise certain taxes and to improve collection efforts .
Ecuador (top)
The country is a member of the Organization of Petroleum Exporting
Countries (OPEC), which secures an efficient, economic and regular supply
of petroleum to consumers, a steady income to producers and a fair return
on capital to those investing in the petroleum industry.
The state-owned oil company, Ecopetrol, hopes to invest US$12.5 billion in
2007-2011 to step up exploration, production and boost refinery capacity.
Ecuador also has 345 billion cubic feet (Bcf) of natural gas reserves but
lacks much of the infrastructure to develop this energy source .
Foreign investment has grown throughout most of this decade and the
current account is in surplus. The government has announced its intention
to renegotiate all contracts with foreign oil producers. The goal is to
increase the state’s share of production in private projects to 50% from
the current 20%.
Ecuador has 3.8 billion barrels of proven crude oil reserves with a
significant portion remains virtually untapped in the
Ishpingo-Tiputini-Tabbococha fields.
El Salvador (top)
It is Central America's largest producer and consumer of geothermal
energy. The country has two main geothermal facilities. Thermal generation
accounts for 42% of generated electricity while hydropower provides 26%.
It is participating in the Puebla-Panama project. The goal of this
initiative is to unify the electricity grids of Central American countries
to reduce costs and the frequency of power disruptions, as well as to
attract private sector investment.
The government pursues an export-led strategy which includes trade
agreements with the USA, Chile, the Dominican Republic, Taiwan, Mexico,
Panama and Colombia. Textiles and apparel, shoes, and processed foods are
among the industries that are benefiting.
Agriculture accounts for around 11% of GDP. Cash crops include sugar,
cotton and especially coffee. Industry makes up over 30% of GDP. Leading
industries include textiles, food processing, beverages, petroleum,
chemicals, fertiliser and furniture manufacture. Growth of maquiladoras,
which are firms engaged in the assembly of products, mainly textiles and
apparel, for re-export, has helped to offset the decline in farming. The
establishment of free-trade zones has encouraged the development of
several industries.
Economic reforms have allowed the government to reduce public debt. The
goal is to cut this debt to 30% of GDP by 2013 .
Guadeloupe (top)
The country has an industrial free port at Jarry and a fair-sized ship
repair business. This creates ease of transportation for companies looking
to do business.
Agriculture contributes 15% of GDP and employs 15% of the work force. The
industrial sector employs 20% of the workforce and contributes 9% of GDP.
Services, which are dominated by the tourist sector, account for 68% of
GDP .
Guatemala (top)
Both the US Congress and the Guatemalan government ratified the Central
American Free Trade Agreement (CAFTA) in 2005 and Guatemala has concluded
a free-trade agreement with Mexico.
The country is participating in the Puebla-Panama project. The goal of
this initiative is to unify the electricity grids of Central America to
reduce costs and the frequency of power disruptions, as well as to attract
private sector investment for the development of new power plants.
The government launched a major reorganization of the banking system and
strengthened financial supervision. The new laws have led to significant
improvements in the health of the banking sector. This makes the country
makes attractive for foreign investment.
The industrial sector is dominated by small-scale manufacturing geared
mainly to serve the domestic economy. Clothing, textiles, pharmaceuticals
and construction materials are the main industries.
Guatemala is Central America's largest oil producer, producing almost
16,000 barrels per day. The country has 83 million barrels of proven oil
reserves located primarily in the country's northern jungles. Efforts are
also underway to explore and exploit potential reserves near Lake Izabal,
Guatemala's largest lake .
The agricultural sector accounts for two-thirds of exports, and employs
half of the work force. The country's main exports are coffee, sugar,
bananas, cardamom and beef, but coffee is by far the most important .
International reserves have risen to record levels, boosted by strong
remittances and capital inflows. The government is known for its sound
fiscal management with public debt being one of the lowest in the region.
Guatemala is reportedly negotiating a trade agreement with the Andean
Community .
Guyana (top)
Officials are anxious to diversify the economy. Guyana has much
potential to develop the tourist sector but seeks foreign investment for
improvements. Brazil has recently committed US$3 million to complete a
bridge between the two countries. This could help to boost trade if it is
accompanied by other improvements in transport .
Guyana consists of mainly Amazon rainforest area, which is being
deteriorated daily and needs international support to cease its
destruction.
Guyana's economy depends heavily on sugar and rice production, gold and
bauxite mining, and logging. Foreign investors are hoping to move in to
grow sugar cane for ethanol.
Policy makers are working to restructure the state-owned sugar and bauxite
companies, and strengthen the regulatory framework of the domestic banking
system. To improve the quality and efficiency of public spending and
safeguard debt sustainability, the authorities plan to establish a
five-year rolling Public Sector Investment Program.
Haiti (top)
The key objective of the current government is to stabilize the economy
and gain support of the international community. In support of this
effort, the US government eased regulation on the import of Haitian
textiles in 2008 which makes the country more attractive to foreign
investment and markets.
Haiti has deposits of copper, silver, bauxite, gold, marble, lignite and
asphalt, but only bauxite has ever been mined. There is very little
foreign investment in the country at present.
There is very little foreign investment in the country at present. There
was a significant investment of US$40 million Hilton hotel being built
near the airport. The country wants to expand the tourism sector,
therefore seeks further investments such as these .
The economy relies overwhelmingly on the agricultural sector, which
employs 70% of the workforce. Agriculture accounts for only about 30% of
GDP. Coffee is grown for export along with sugar and mangos .
Honduras (top)
The Central American Free-Trade Agreement (CAFTA) between the USA and
Honduras took effect in 2006. The country also has free-trade agreements
with Panama, Central America, Colombia and Taiwan. In 2008, the country
joined Petrocaribe and the Bolivarian Alternative for the Americas, two
programs organized by Venezuela.
Honduras is one of the main centers of clothing “assembly for export”, or
maquiladoras. By volume, it is the world's third-largest exporter of
clothes to the USA and its economy is especially reliant on textiles and
clothing production, which goes mostly to the USA.
Agriculture is the largest sector of the economy. In a typical year,
farming accounts for about one-quarter of GDP and up to 60-70% of export
revenues. Bananas and coffee are the major exports.
Structural reforms to improve the efficiency of the public sector and the
stability of the financial system have been approved. The intention is to
provide stronger institutional support for economic growth. A national
competitiveness plan places top priority on the development of
agribusiness, forestry, and tourism, which are all areas with growth
potential. An income tax surcharge was introduced in 2008.
The country's tiny tourism sector has potential but is underdeveloped.
However, more than US$100 million is being spent to develop hotels, luxury
villas and golf course near Tela, Honduras. The new resorts will target
wealthy visitors who are willing to pay premium prices. Foreign investment
is contiuously being sought out.
Mexico (top)
Mexico is a member of NAFTA, which is the North American Free Trade
Agreement together with the United States and Canada. It is the world's
largest free trade area, which now links 444 million people producing $17
trillion worth of goods and services.
The country is also a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
Between 2008 and 2010, Mexico is predicted to be the wealthiest country in
Latin America in basic GDP terms due to its expanding middle class,
increased access to consumer credit and sales of consumer goods and
services. By 2010 Mexico will have the highest GDP per capita Latin
America with US$10,159. By 2020, the Mexican population will rise to 57
million . This makes Mexico very attractive to foreign investment.
Following a wave of reforms, Mexico's banking system is solid and
profitable while the regulatory framework is close to best practice.
Mexico has the third-largest amount of conventional crude oil reserves in
the Western Hemisphere. Pemex does not have sufficient funds available for
exploration and investment, owing to high financial burdens placed upon
the company by the Mexican government, therefore they are seeking foreign
investment. Proven reserves have increasingly been dropping and the
country could become a net importer in just a few years, which open the
opportunity for foreign markets to expand in this sector.
Mexico shares a border almost the length of 2,000 with the United States
of America, which facilitates ease of trade and transportation between the
two countries. It also has coastlines on both the Atlantic and the Pacific
and embraces a wide range of territorial types.
Netherlands Antilles (top)
The banking sector has demonstrated continued resilience.
Profitability, provisioning and balance sheets in the banking sector have
improved. A new agreement with the Netherlands on dividend taxation is
expected to improve the international financial industry.
Tourism, petroleum trans-shipment and offshore finance are the mainstays
of the economy, which depends heavily on overseas markets. The main
industries are petroleum refining in Curaçao, petroleum trans-shipment
facilities in Curaçao and Bonaire and light manufacturing in Curaçao.
The islands enjoy a high per capita income and a well-developed
infrastructure. Pension payments will rise from 2009 due to the ageing
population. The retirement age will also be raised to 65 .
Private investment has improved which has been helped by the extension of
two airports and several hotel projects that will boost construction
activity. Although the country continuously seeks foreign investment.
Nicaragua
The country has a trade agreement called the Dominican Republic-Central
American Free Trade Agreement (DR-CAFTA) with the USA. The DR-CAFTA gives
the country better access to the US market.
Agriculture accounts for one-third of GDP and employs 42% of the
workforce. Major exports include coffee, cotton, sugar and bananas. Food
processing, coffee roasting, textiles, timber and handicrafts are other
important activities. Under the Central American Free Trade Agreement,
policy makers hope that export niches will emerge for peanuts, rum, cigars
and cheese .
Fossil fuels account for around 80% of country’s electricity generation,
with hydropower and other renewable sources, mainly geothermal, which
accounts for 7.6%. The government plans to boost investment in the
electricity industry while reducing distribution losses and improving the
regulatory framework .
The government has introduced a number of fiscal reforms to support its
medium-term plans. These moves have substantially improved public finances
and make it more attractive to foreign investment and market expansion.
Services account for 47% of GDP . Tourism has emerged as one of the
country’s most dynamic sectors with the number of visitors growing
significantly every year. The country is continuously seeking foreign
investment in assist in the development of this sector.
Panama (top)
Recent free-trade agreements are aimed at luring foreign investors.
Negotiations have been successfully concluded with Taiwan, El Salvador,
the USA and Costa Rica. They are intended to bring in foreign investors
who have a regional focus, encouraging them to establish operations in
Panama in order to make use of the country's transportation, financial and
communications infrastructure. The investment climate is superior to that
in most Latin American countries. There are no limitations on the
repatriation of profits or capital transfers. The current government has
promised to impose a flat tax of 10%-20% on businesses. The move would
simplify the tax regime and attract more foreign investors .
Exports of domestically-produced goods have increased, thanks to higher
sales of products such as flour and fish oil, shrimp larvae, coffee and
sugar. Domestic crops include rice, maize, potatoes, beans and beef. The
fishing industry is another major source of foreign exchange revenues, as
Panama is the world's third biggest shrimp exporter .
Panama is a financial and communications hub that sits at the crossroads
of five international fiber-optic networks and hosts 110 international
banks. The service sector accounts for nearly 80% of GDP. Services include
the Panama Canal, container port activities, shipping, ship registry,
insurance, wholesaling and distribution out of the Colon Free Zone, and
government activities, which represents about 14% of GDP.
Tourism generates US$1-2 billion per year and has been growing rapidly.
The government offers tax incentives to develop tourist facilities and
projects .
The country is participating in the Puebla-Panama project. The goal of
this initiative is to unify Central American electricity grids to reduce
costs and the frequency of power disruptions, as well as to attract
private sector investment for the development of new power plants. Panama
is the largest energy consumer in Central America. With no proven oil,
natural gas or coal reserves, the country is required to import all of its
hydrocarbon needs .
Paraguay (top)
The country is a member of Mercosur, the trade bloc consisting of
Brazil, Argentina, Paraguay and Uruguay. Paraguay presently has one of the
strongest fiscal positions of any economy in Latin America and one of the
lowest levels of public debt.
Agricultural activities represent at least one-quarter of all economic
activity and account for almost all exports. Soy makes up 75% of
agricultural exports and makes Paraguay the world's fourth largest
exporter of soybeans .
The country has vast hydroelectric resources, including the world's
largest hydroelectric generation facility, which is built and operated
jointly with Brazil (Itaipú Dam).
Peru (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The United States and Peru signed the United States-Peru Trade Promotion
Agreement (PTPA), which resulted in significant liberalization of trade in
goods and services between the United States and Peru. Under the PTPA,
Peru immediately eliminated most of its tariffs on U.S. exports, with all
remaining tariffs phased out over defined time periods. The ratification
of this free-trade agreement with the USA should help to bolster
competitiveness.
Mining already provides more than half of all exports and accounts for
around 30% of total tax revenues. Gerdau of Brazil plans to invest US$1.4
billion to boost production of its steel facility, which is mainly for
export. Another Brazilian firm is spending US$500 million to expand zinc
output. Development of five Chinese mining projects is proceeding despite
the weaker global economy. In addition, foreign investors plan to spend
nearly US$3 billion developing hydroelectric facilities. The country has
vast mineral potential, with deposits of copper, silver, zinc, gold, iron
ore, phosphorus and manganese .
Manufacturing is widely diversified, with rubber, vehicle assembly,
engineering, food processing and chemicals being the most prominent. The
government has signalled that it intends to promote textiles and woolen
products, particularly for fine wool from alpacas, llamas and vicuña.
Peru's agricultural sector employs about 40% of the workforce. Most
farming is for subsistence but the sector is also an important earner of
foreign exchange and continuously seeking foreign investment.
The government has adopted measures to lower distortionary taxes and
exemptions and to improve the quality of public spending. Tariffs were
also lowered marginally. The country has an open and transparent
investment regime. A one-stop window for trade transactions is now
operational.
Tourism employs 6.8% of the work force and its share in GDP is
approximately 7.7%. To expand this sector, the country seeks foreign
investment for items such as infrastructure.
St. Kitts (top)
Nevis's economy is based on tourism and offshore financial services,
while St Kitts's economy is larger and more diversified. Services account
for 70% of GDP and depend mainly on tourism. Tourism is not fully
developed but has considerable potential. It is typically one of the
fastest growing sectors of the economy .
Agriculture contributes just 4% of GDP and is spread around the coastal
areas. Bananas, copra and cotton are the main export products but sugar
cane is the dominant product. The authorities hope to boost production of
agricultural crops, livestock and fisheries as part of its overall
diversification program .
Banking reformation has taken place on St Kitts, therefore making it an
attractive place for foreign investment and removing it from the OECD's
list of non-cooperative states.
St. Lucia (top)
Tourism accounts for nearly three-quarters of the country’s exports.
Plans exist to increase the stock of hotel rooms by about 30%, or 1,100
new units. The country attracts more than 200,000 visitors in most years .
The industry has much potential with forests, sandy beaches, minerals
(pumice), mineral springs and geothermal sources. This sector is
continuously seeking foreign investment to realize its tourism potential.
St. Lucia has been able to attract some foreign business and investment,
especially in its offshore banking and tourism industries. The fact that
the manufacturing sector is the most diverse in the Eastern Caribbean area
is of great interest to foreign investors looking to penetrate the market.
Trinidad and Tobago (top)
Within the Caribbean, Trinidad and Tobago has become a major financial
center and a source of capital. The authorities have embarked on an
ambitious effort to modernize the legal, regulatory and supervisory
frameworks governing the financial sector, with a view to reducing
vulnerabilities and promoting Port-of-Spain as a financial center.
Additionally, in 2007, the corporate income tax was cut to 25% .
Growth averaged 9% in 2002-2007. Trinidad and Tobago now has one of the
highest per capita incomes in Latin America. The government hopes to use
its energy resources to reach the status of a developed country by 2020.
Currently, natural resources provide almost 40% of government income .
Trinidad and Tobago is the largest producer of oil and gas in the
Caribbean. Crude oil reserves, at an estimated 728 million barrels, will
be exhausted in less than two decades unless new reserves are found,
therefore the country is seeking foreign investment to help realize this
exploration .
Trinidad and Tobago has received foreign direct investment of more than
US$6 billion and these inflows are expected to accelerate over the next
few years. A series of steps to promote exports including the
liberalization of trade and the foreign exchange market have been
introduced with modest success. Sugar, citrus fruits and copra being grown
for export, while rice, coconuts, yams and bananas are produced for the
domestic market.
Suriname (top)
Suriname is a member of CARICOM (Caribbean Community and Common Market)
common external tariff and approved the CARICOM Single Market and Economy
Treaty.
To strengthen the financial system, a new banking supervision law was
passed and an anti-money laundering law was implemented.
The government intends to spend heavily on new roads, railways and
low-cost housing. These investments are much needed and should contribute
to an improved business environment. Officials are also working to promote
diversification of the economy. Officials plan to introduce a VAT regime,
a move which should reduce the volatility of government revenues. The
government reached agreement with private investors to build six
industrial plants valued at US$7.4 billion. The projects include urea
ammonium nitrate plants, aluminum smelters, a petrochemical complex, and
an iron and steel plant .
The government’s policy stance has become more expansionary. The central
government's overall deficit has widened, owing to a substantial increase
in capital expenditure and a drop in domestic fuel taxes. Monetary policy
also became more accommodative.
Agriculture makes up 13% of GDP, industry accounts for 22% and services
contribute the remainder. Agriculture is viable only along the coastal
regions where the terrain is more accessible. Products range from sugar
and banana plantations to rice, which is the staple crop, and vegetables.
Further inland, timber and forestry are found. In the high sierras, balata
is extracted from trees . Suriname has an abundance of other natural
resources including timber, hydropower potential, fish, shrimp, iron ore,
as well as small amounts of nickel, copper, platinum and gold.
The country's main industries include bauxite, lumbering, food processing
and commercial fishing. The economy is dominated by the bauxite industry,
which accounts for around 15% of GDP and more than 70% of export earnings
in recent years. Alcoa and BHP Billiton have invested US$150 million in
two new bauxite mines which began operation in 2006 .
Suriname has immense and largely unrealized hydroelectric potential in its
upland jungle areas, as well as some oil resources offshore . The country
is seeking foreign investment to reach its exploration potential.
Uruguay (top)
The country has an agreement for trade and investment with the US. The
agreement could be a precursor for a full-fledged free-trade deal however
this is still under discussion .
A free trade agreement with Mexico has been implemented and further trade
reform measures are under negotiation, including reductions in tariffs on
capital goods for equipment and telecommunications, information technology
and agricultural inputs from 6-9% to 2%, effective through 2011 .
Additionally, the authorities will continue to phase out a number of
specific import duties on textiles, foodstuffs and chemical products.
The government has followed a broad policy known as “neo-liberalism”. This
approach was distinguished by modest efforts to privatize state-owned
enterprises and the pursuit of free trade with the US.
Natural gas is likely to play a growing role in the future. The government
wants this energy source to make up 30% of total usage. The most recent
development was the successful opening of the first phase of the Southern
Cross pipeline that cost between US$160 million and US$170 million. The
pipeline will be capable of carrying up to five million cubic meters per
day .
Venezuela (top)
Venezuela is a member of Mercosur, the trade bloc consisting of Brazil,
Argentina, Paraguay and Uruguay.
It is a member of the Organization of Petroleum Exporting Countries
(OPEC), which secures an efficient, economic and regular supply of
petroleum to consumers, a steady income to producers and a fair return on
capital to those investing in the petroleum industry.
The petroleum sector dominates Venezuela's mixed economy, accounting for
roughly a third of GDP, around 80% of exports, and more than half of
government revenues. Venezuela contains some of the largest oil and
natural gas reserves in the world .
Venezuela has 99.4 billion barrels of proven oil reserves, which is the
largest in South America. Due to the maturity of many oil fields and their
declining productivity, the state-owned oil company wants to boost its
spending to increase production at existing oil wells, as well as to
develop new non-conventional extra heavy crude oil and natural gas
resources .
Venezuela's birth rate is among the highest in South America, after
Bolivia, Paraguay and French Guyana. Venezuela is also among the most
urbanized countries in Latin America, which makes it attractive to foreign
penetration.
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