The economical situation of South America in the recent years has become a central subject of study for experts worldwide, because of its certainly peculiar behavior.

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Intoduction-

The economical situation of South America in the recent years has become a central subject of study for experts worldwide, because of its certainly peculiar behavior. The past two years have been an important exposition of the regional instability as the richest countries- as Argentina- going even through others, in all economical federations (Andean Community of Nations, Mercosur) have undergone tremendous structural changes as a result of social, political and demographical factors which provoked, or rather triggered economical sufferings regionwide.

South America, formerly colonized by the Spanish Kingdom, is composed this by young nations with changing democracies, much as their economical policies. The way matters have been handled (as for example the consolidation of Neoliberalism) has been a factor for social provocation; the amount of ongoing news events affecting the government structure far exceeds that of the European Union and other economical leagues. The continent also holds many of the world’s underdeveloped nations making it a study case for an observation into the inhibitions- and probably failure- of the imposition of policies which have prospered in Europe, Japan or the United States (even China).

By observing the economical databases of the countries of South America, alongside the political ongoing events, the social affairs and the demographical changes, I wish to make a thorough analysis of what and why has been going on in the struck economy of the region, and wether any other country appears to be profiling itself into a social time-bomb as Venezuela, and Argentina, have recently done.

Data Collection- (Note: Figures in US Dollars)

Bolivia

Argentina

Chile

Colombia

Brazil

Ecuador

Paraguay

Peru

Uruguay

Venezuela

Market Participation

Analysis-

South American trade economies have been divided into 2 major preferential groups: The Andean Community, built upon countries within the Northern half of the continent (And those liberated by Simón Bolivar, historically); These countries also have a higher dependande on the trade market with the United States of America.

The Mercosur gathers the Southern end of the continent and thus more European focused countries (exception: Brazil)

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Certain countries are associate members of the Mercosur while being permanent members of the Andean Community: Bolivia and Peru.

Chile, due to historical reasons, did not sign as a permanent member of the Mercosur, but has an associate participation in the economical groups of South America. Still, it remains the only totally independent country.

GDP Growth Rates

Analysis-

Most South American countries appear to have a minimum growth rate in their GDP. However, most countries are now in a recession and some have increasingly lower GDP growth rates (for example URUGUAY, dropping more ...

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