Valuations and the Long Term benefits

Foreign investment and annual trade soared by $85 billion between 1994 and 2000, helping to make Mexico the largest economy in Latin America. Its manufacturing base, buttressed by the export-oriented maquiladoras that dot its northern border, have shown marked increases of exports, nearly 90 percent of which are destined for the U.S.



Mexico experienced an economic slowdown during the past two years induced mainly by the recession in the U.S., its most important trading partner. Recovery is underway, but at a slow pace as third quarter GDP rose by a mere 1.4 percent annualized rate. Nevertheless, the economic outlook is bright as inflation is low while steady foreign investment translates into higher growth in 2003. This is good news for real estate developers, who saw their once-hot markets cool last year. It is a regular viewpoint that one can never rely on upon bank valuation and their Appraiser is regularly a preservationist one by any standard.

There has been two years of strong record supply of land in the industrial sector, says Mr Pond. Land is tightly held by all the trusts, but due to the competition to get preleases, that competition is holding down rents. Brazil is South America’s largest economy and ninth largest in the world.

Dissatisfied with the domestic economy, Brazilians elected their first leftist president in 2002, Luiz Inacio Lula da Silva. “Lula,” who favors slow adoption of the proposed Free Trade Area of the Americas (FTAA) agreement, wants to bolster the economy through domestic spending.

Chile remains the model of vitality in South America with sound monetary and fiscal policies and a stable political environment. But Chile began to feel economic shockwaves in 2002 as a result of its proximity to troubled Argentina.

Looking ahead to 2003, the South American economies will be polarized. Brazil, Chile, Columbia and Peru will post real GDP growth of 2.0 to 4.2 percent with reasonable inflation. Research shows the stand out markets in terms of capital value growth were Adelaide and Perth, though these markets see a relatively smaller volume of sales compared to other markets. The long-term economic prospects for South America remain positive.

The region’s assets - a sizable labor force, oil reserves, agricultural production, mineral deposits and other natural resources - remain attractive on global markets. Demand for its exports will depend on the recovering economies of the U.S., Asia and Europe. The pending FTAA agreement will have positive effects for most countries in the Western Hemisphere, but it remains a few years from implementation.