Country Profiles

South America is an important region for business, but it is not yet so integrated that you can apply a uniform strategy. Consider your options country by country. The five largest economies that are open to global business are highlighted here. But don’t neglect to investigate some of the smaller countries that might match a particular focus of your strategy.

Brazil

Brazil is the largest country in the region in terms of area, population, and economy. It is ranked as the world’s 10th largest economy by the International Monetary Fund and the World Bank. Its economy spans agriculture, mining, industry, and technological services as well as a large pool of labor. Brazilian exports are booming, creating a new generation of tycoons. Major export products include aircraft, coffee, automobiles, steel, ethanol, and electrical equipment. Brazil is regarded as one of the four fastest emerging economies alongside Russia, India, and China.

• Capital/largest city: Brasília/São Paulo

• Population: 200 million

• Official language: Portuguese

• GDP/GDP per capita: $1.7 billion (2008)/$10,100 (purchasing power parity)

• Currency: I real (BRL) = 100 centavos

• Time zone: UTC -2 to -4

• Dialing code: +55

• Principal business areas: São Paulo, Rio de Janeiro, Campinas, Porto Alegre

Chile

Chile is one of South America’s most stable nations. Business-friendly government policies drive the economy. Chile’s economy is split almost evenly between industry and services, with agriculture a distant third. Important sectors include aircraft manufacture, copper, mining, and financial services.

• Capital/largest city: Santiago/Santiago

• Population: 17 million

• GDP/GDP per capita: $181 billion (2008)/$14,700 (purchasing power parity)

• Currency: 1 peso (CLP) = 100 centavos

• Time zone: UTC -4

• Principal business areas: Santiago, Valparaíso

Argentina

Manufacturing is the nation’s largest sector, especially in the areas of food processing, chemicals, and machine and automotive parts. Argentina is also one of the world’s major agricultural producers, with soy farming, beef and dairy herds, and sheep farming as significant contributors to the economy.

• Capital/largest city: Buenos Aires/Buenos Aires

• Population: 40 million

• GDP/GDP per capita: $339 billion (2008)/$14,400 (purchasing power parity)

• Currency: 1 peso (ARS) = 100 centavos

• Time zone: UTC -3

• Principal business areas: Buenos Aires, Córdoba, Rosario, Mendoza

Peru

Peru’s economy is largely based on services, which account for over half of its GDP. Other important contributors are mining and the processing of metals and fossil fuels, and automotive manufacture. Peru’s main exports are copper, gold, zinc, textiles, and fish meal.

• Capital/largest city: Lima/Lima

• Population: 30 million

• GDP/GDP per capita: $107 billion (2008)/$7,800 (purchasing power parity)

• Currency: 1 nuevo sol (PEN) = 100 céntimos

• Time zone: UTC -5

• Principal business areas: Lima, Cajamarca, Ica, Cuzco

Colombia

The Colombian economy has one of the highest growth rates in South America, reaching 8.2 percent in 2007. Its main industries are agriculture—largely coffee—and mining—mostly coal, petroleum products, and gold. Tourism is also increasingly important to the Colombian economy.

• Capital/largest city: Bogotá/Bogotá

• Population: 46 million

• GDP/GDP per capita: $202 billion (2008)/$8,000 (purchasing power parity)

• Currency: 1 peso (COP) = 100 centavos

• Time zone: UTC -5

• Principal business areas: Bogotá, Medellín, Santiago de Cali