MercoPress. South Atlantic News Agency

Mexico and Brazil leading regional economies

Mexico and Brazil figure as the leading Latinamerican economies and ranked ten and thirteen according to the latest world Atlas report from the World Bank. The ranking is based on the Gross National Income.

The top ten are United States, Germany, Japan, United Kingdom, France, China, Italy, Canada, Spain and Mexico, followed by South Korea and India, with Brazil a GNI equivalent to 480 billion US dollars.

Argentina continues as the third Latinamerican economy, 142 billion US dollars, but in spite of the strong recovery of the last two years with growth rates in the range of 9%, actually dropped in world ranking from 30 to 34, behind, South Africa, Thailand, Iran and Portugal.

Apparently the World Bank Atlas system takes into account the exchange rate of the last three years, 2004, 2003 and 2002, which means the full impact of the Argentine peso devaluation and the 2001/2002 financial crisis, has become to be reflected.

Actually Argentina in 1999, with its fixed exchange rate policy of one US dollar equivalent to one Peso, ranked 17 in the world with a GNI of 276 billion US dollars and the following year managed to remain in the same position but the GNI was 260 billion.

South Africa on the other hand jumped from position 33 to 30 on the back of the strong appreciation of the local currency and gold, its main export.

Similarly oil rich Venezuela with a GNI of 104,9 billion US dollars figures fourth in Latinamerica and 39 in world ranking; Colombia with 90,6 billion is 6 in the region and 39 world wide.

Chile with a 78,4 billion GNI figures in places 6 and 48.

However, per capita income is not measured in the same way or in US dollars. Although large countries, which tend to have large markets attract most investments, PPP (purchasing power parity) give a better idea of living conditions. In the PPP GNI per capita ranking, Argentina figures in position 66, Chile 77, Mexico 80, Brazil 86 and Venezuela 125.