This document provides an overview of the economic and business environment in South America. It discusses the ups and downs the continent has faced in the 21st century and provides country profiles for Brazil, Argentina, Venezuela, Chile, and Colombia with details on population, GDP, inflation, unemployment, and other macroeconomic indicators. It also outlines the major regional trade blocks in South America and provides current exchange rates for the currencies of each country.

1. Meghe Group of Institutions
Department
for
Technology Enhanced Learning
1

2. MBA Department
II SEM
BUSINESS ENVIRONMENT
UNIT- VI
Economic and Business
Environment in South America
2
DTEL

3. Syllabus : Unit 6
• Ups and Downs of South America in 21st century.
• Overview of the Continent
• Brief Country Profile
• Similarities and Differences of Countries in South
America
– Brazil
– Argentina
– Venezuela
– Chile
– Columbia
• Regional Trade Blocks and Road Ahead
3

4. South America

5. BRAZIL:MACRO ECONOMIC DATA
Population 181 million
Population Density(ppl/sq/km) 21.1
Population growth(annual %) 1.2
Urban Population 81%
GDP(PPP, current US$) 514.4 billion
GDP real growth(annual %) 1.8%
Inflation 13.4%
Unemployment Rate 19.5%
Life Expectancy at birth 73.4

6. ARGENTINA:MACRO ECONOMIC DATA
Population 39.5 million
Population Density(ppl/sq/km) 13
Population growth(annual %) 1.02
Urban Population 89.3%
GDP(PPP, current US$) 433.5 billion
GDP real growth(annual %) 8.7%
Inflation 13.4%
Unemployment Rate 17.5%
Life Expectancy at birth 76

7. VENENZUELA:MACRO ECONOMIC
DATA
Population 25.5 million
Population Density(ppl/sq/km) 17
Population growth(annual %) 1.9
Urban Population 88%
GDP(PPP, current US$) 94.2 billion
GDP real growth(annual %) 3.2%
Inflation 22.3%
Unemployment Rate 19.5%
Life Expectancy at birth 72.3

8. CHILE:MACRO ECONOMIC DATA
Population 16.1 million
Population Density(ppl/sq/km) 17.4
Population growth(annual %) 1.3
Urban Population 83%
GDP(PPP, current US$) 72.2 billion
GDP real growth(annual %) 3.3%
Inflation 3.3%
Unemployment Rate 12.3%
Life Expectancy at birth 76.3

9. COLOMBIA:MACRO ECONOMIC DATA
Population 46.16 million
Population Density(ppl/sq/km) 18.4
Population growth(annual %) 1.5
Urban Population 76%
GDP(PPP, current US$) 77.6 billion
GDP real growth(annual %) 3.7%
Inflation 7.3%
Unemployment Rate 16.8%
Life Expectancy at birth 71.8

10. REGIONAL TRADE BLOCKS
• Association of American Chambers of
Commerce in Latin America(AACCLA)
• Mercosur: The Southern Common Market
• South American Community of Nations(SACN)

11. EXCHANGE RATES
Country Brazil Argentina Venezuela Chile Colombia
Exchange
Rate
2.46
Real/US $
3.06
Argentine
Pesos/US $
1160
Bolivares/
US$
688.95
Chilean
pesos/US$
2504
Columbian
pesos/US $

12. Suggested Readings
• Business Environment : Text and Cases
– Justin Paul (3rd Edition , McGraw Hill Publication)