Brazil is the largest country in South America by land area.
Regional GDP excluding Venezuela grew 1. Tailwinds from higher commodity prices, recovering private consumption and a solid global economy supported growth in the quarter.
However, growth was uneven across countries and activity in the more vulnerable economies of Argentina and Brazil floundered. Looking at the individual economies with GDP data available, economic dynamics strengthened in ChileColombiaMexico and Peru in the second quarter.
Similarly, the domestic economy drove growth in Colombia aided by rising economic sentiment. More recently, headwinds have picked up in the third quarter, preventing a stronger recovery.
In an attempt to rein in the crisis, the government unveiled a raft of new measures in August including a new currency, the sovereign bolivar and minimum wage hikes.
The reforms are unlikely to steady the economy, however, as they fail to tackle the fundamental issues of foreign exchange misalignments and chronic mismanagement.
The country heads to the polls on 7 October to decide the next president, and the outcome is highly uncertain, with a second-round presidential vote practically guaranteed. Irrespective of who succeeds the current president, Michel Temer, the next president will face a tough challenge of trying to stoke a faster recovery, reduce bloated government accounts and navigate a likely divided Congress to force through legislation.
So far centrist and reformist candidates are performing poorly in the polls. Regional GDP excluding Venezuela is now seen growing 1. Next year, regional growth is seen picking up pace and coming in at 2.
This month, Argentina and Brazil had their forecasts cut, along with Uruguay. We have therefore removed Venezuela from the regional aggregates and discontinued its long-term forecasts. Rampant inflation, dwindling oil production and a dysfunctional exchange rate system are expected to keep Venezuela in a dire economic crisis, and the economy is seen contracting Exports plunged due to transit disruptions, while household spending also slid in Q2, likely weighed on by deteriorating sentiment and a spike in inflation.
Business and consumer confidence both fell in August amid a tense and uncertain political backdrop, and industrial production contracted in July. Moreover, the real plunged in recent weeks, boding poorly for inflationary pressures.
Against a challenging economic backdrop, the country will head to the polls on 7 October in presidential and legislative elections.
The battle for president remains crowded with a second-round vote nearly guaranteed. A market-friendly outcome to the election remains crucial to ensuring a sustainable recovery. FocusEconomics panelists now see the economy growing 1.
Next year, GDP is seen growing 2. Details of the bilateral talks suggest significant concessions by Mexico in the automotive sector, and early analyses of the tentative deal offered diverging views on its merits.
The announcement came on the heels of revised second-quarter national accounts data, which confirmed weak first estimates held back by downbeat agricultural and industrial readings. Meanwhile, available data for the third quarter hints that a nascent domestically-driven turnaround could be afoot.
That said, the manufacturing sector has yet to fully bounce back, and trade data in recent months has been far from encouraging. Tight domestic and U.
Diminishing political uncertainty, meanwhile, should buoy investment. Although external trade remains a concern, healthy factory output in the U. In politics, most analysts expect AMLO to govern as a big-spending centrist. FocusEconomics panelists expect growth of 2. Forpanelists see growth stable at 2.
In exchange for bringing forward the disbursements, the government offered new fiscal reforms intended to speed up consolidation. Confidence is in the doldrums and tighter monetary conditions are bound to bruise spending and investment this quarter.
Exacerbating matters, economic activity contracted in the second quarter as drought wreaked havoc on the agricultural sector, and a brewing corruption scandal in the construction sector is poised to weigh on activity through the remainder of the year.
Amid the hobbling of activity and the worsening of the crisis, the economy has likely entered recession and a majority of FocusEconomics Consensus Forecast analysts now see the economy contracting this year. That said, a number of analysts are still taking recent events into account.
LatinFocus Consensus Forecast analysts see the economy contracting 1. Private consumption picked up pace as inflation dipped and consumer confidence jumped to a three-year high, while fixed investment rebounded on a recovery in machinery and equipment.
Although exports rebounded in Q2 on higher oil prices, the external sector dragged more severely on growth as imports outpaced exports.
Going into the third quarter, private consumption likely moderated as the unemployment rate crept back up in July and consumer confidence fell in the month. The economy is expected to accelerate this year on higher oil prices, which should boost investment in the extractive sector.
Planned infrastructure projects and rising investor confidence stemming from reduced political uncertainty should help lift growth.Brazil is the largest country in South America and the fifth largest nation in the world.
It forms an enormous triangle on the eastern side of the continent with a 4,mile (7,kilometer) coastline along the Atlantic Ocean. It has borders with every South American country except Chile and Ecuador. The Brazilian landscape is very varied.
Located on the western side of South America, Peru is the third largest country in South America with a land area of , square miles.
Bordering Colombia, Ecuador, Brazil and Bolivia, Peru is a biodiverse nation with vast plains, coastal regions and rainforest. South America is a continent of great variety, and that also goes for its countries, with the largest occupying a land area close to the size of the entire United States including Alaska, and the smallest country on the continent around the size of Wisconsin.
Straggling across half of South America, Brazil has captivated travelers for at least years. It is the largest country and the only Portuguese-speaking country in Latin America.
Latin America growth outlook chopped again After expected growth of % in , Latin America’s economic recovery is seen gradually accelerating next year. Firmer growth in Brazil thanks to revived investment should boost the region’s momentum, along with a slight improvement in Argentina’s situation. Brazil (Portuguese: Brasil), officially the Federative Republic of Brazil (Portuguese: República Federativa do Brasil, listen (help · info)), is the largest country in both South America and Latin America. South America's largest city in population size, which surpassed nearby Rio de Janeiro in the s, is_____.
It has a history of being a colony of Portugal from the landing of Pedro Alvares Cabral in until its independence in The most populous country in South America is Brazil with million people. The second largest country is Colombia with a population of 48,, Argentina is the .
Languages in South America: Spanish is the main language in South American countries, only in Brazil people speak Portuguese and in Surinam, formerly a Dutch colony, the official language is still Dutch.
Many people speak also English as a second language.