Source: UOL - SP - INTERNACIONAL - 08/09/2009

Beijing, 8 September (EFE) .- Brazil, Uruguay, Colombia Peru and other Latin American nations are more competitive in 2009, despite the 1,9% retraction expected this year in the region, according to an analysis by the World Economic Forum (FEM) published today.

The “Global Competitiveness Report 2009-2010” reveals that, due to the strength of its macroeconomics, Latin America has achieved a certain amount of armor in the face of the crisis.

The same document predicts for 2010 a growth of 3,1% in the regional GDP (Gross Domestic Product), a percentage higher than the 1,9% forecast for the rest of the world in the same period.

Fifth most competitive country in the region, Brazil, in an “impressive” rise, in addition to rising from 64th to 56th in the ranking of the FEM, for the first time it surpassed Russia, a member of the BRIC (Brazil, Russia, India and China), and narrowed its distance from India and China.

With a more developed financial market and an expanding domestic market, Brazil, alongside Mexico, leads the phenomenon of “multilatinas”, local companies that have expanded their interests in other countries in the region and the rest of the world.

Brazil's deficiencies, according to the report, remain the same: poverty, poor income distribution, the labor market and the educational system.

This year, the report was written by a group of experts coordinated by the Spanish economist Xavier Sala-i-Martin, from Columbia University (USA), who sent a questionnaire to 13 top executives.

The analyzes evaluated variables such as market size, institutional transparency, infrastructure and the labor market.

According to the FEM, Switzerland and the United States occupy, first and second, respectively in the Global Competitiveness Index (IGC). But in Latin America, Chile is the leader.

Mexico, which remained in the 60th position in the IGC ranking, appeared in sixth in the region, which demonstrates its “capacity to recover from the global crisis, in particular due to its proximity and association with the US markets”, but it increases concern about the inefficiency of public institutions and violence.

Uruguay, on the other hand, rose positions to 65th, driven by improvements in the infrastructure, education and technology sectors, while Colombia rose five places (69th), influenced by the stabilization of its macroeconomics, civil pacification and the breadth of markets.

Ninth place in the Latin American region, Peru won five positions and is now in 78th place, pulled by an impressive 9,8% growth in 2008 and a projection of another 2% for this year.

Argentina, although it rose three positions, reaching the 85th position, receives criticism for its fiscal policy, structural debt, institutions and lack of transparency. As for Venezuela, the country dropped eight places, to 113th, due to problems in fiscal policy, violence, crimes, health and education.

Puerto Rico, which dropped one position to 42nd, was highlighted by its capacity for innovation and sophistication, while Barbados (44th), rose three places due to improvements in its institutions, infrastructure and education.

This year, Costa Rica climbed four places, to 55th position, ahead of Panama, which since 2006 has climbed 13 positions.

As in previous analyzes, Suriname (102), Ecuador (105), Nicaragua (115), Bolivia (120) and Paraguay (124) remain far behind in the IGC ranking, due to their deficiencies in institutions, bureaucracy, crime, lack of infrastructure and education, according to the report.