Frontier Strategy Group’s clients are revising growth forecasts for Latin America’s major economies upwards as the outlook for the global economy begins to stabilize. Growth leaders are emerging in the Andean region, and we expect that Chile, Colombia, and Peru will contend for the highest growth rate in Latin America in 2012. Strong fundamentals are keeping the Mexican economy remarkably stable while Brazil continues to miss the mark. Finally Argentina and Venezuela’s risk profile is increasing significantly, forcing MNCs to reconsider whether the potential rewards warrant the blood, sweat, and tears.

For a more detailed insight on key trends in Latin America, here are the analyst headlines for our key markets:

• Argentina: The nationalization of YPF has become the clearest indication of the Fernandez Administration’s hostility to investor concerns
• Brazil: The Brazilian government remains committed to revitalizing the economy, but it has not yet had a discernible impact on industry
• Chile: Strengthening domestic demand, higher copper prices and an improving international outlook point to continued strength for Chile’s economy
• Colombia: Strong growth in an uncertain global environment is forcing Colombia to deal with an appreciating currency and rising wages
• Mexico: Economic prospects appear to be stabilizing, but drug war violence sustains tension
• Peru: Growing pains in spite of robust consumer spending
• Venezuela: Chávez looks to foreign patronage to offset the deleterious effects of economic domination by decree