What are the Most Promising Emerging Markets in Latin America

Latin American countries have high-performing economies and stable governments, making them ideal locations for small or medium-sized enterprises (SMEs) wishing to expand overseas. So which markets should you be considering?

    1. Chile

In recent years, Chile has turned into one of Latin America’s fastest-growing economies. As with most countries, Chile’s growth has had highs and lows. It experienced contractions in 1999 and 2009 and a decline in GDP in 2014, but its economic growth has been somewhat consistent and increasing ever since. While the recent pandemic and other events have led to an increase in unemployment and fiscal imbalance, investors can still count on Chile for a transparent financial system, a strong base of natural resources, and its ability to recover quickly.

    2. Uruguay

While it might seem odd that a country of only 3.5 million people would be on the list for one of Latin America’s most attractive markets, Uruguay offers great potential. Foreign direct investment (FDI) has reached record levels in the country, making it one of the leaders in this category in all of Latin America. Not only does Uruguay have stable democratic institutions, but it also offers attractive free-trade zones (FTZs) and has signed numerous beneficial free trade agreements. Uruguay can thus be a great “starter market” for your SME.

    3. Colombia

The days of Colombia being a pitiable place ravaged by violence between rival narco-traffickers on one end of the country and rebel militias on the other have, thankfully, passed. While remnants of these problems definitely exist, Colombia has been one of the more stable countries with growing economies in recent years. In fact, it is currently one of the five largest economies in Latin America, and its GDP is forecasted to increase in 2021 despite the effects of the COVID-19 pandemic.

    4. Mexico

Mexico’s trillion-dollar economy is the second-largest in Latin America, while its population of over 126 million people is the tenth-largest in the world. While the country has been hit hard by the COVID-19 pandemic, it is not experiencing the political instabilities and social divisions that are plaguing Brazil. Its growing financial sector and burgeoning middle class indicate steady long-term growth.

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