The Importance of China in Latin America The Economist Intelligence Unit estimates that over the next five years, real GDP growth in China will be between 8 and 9 percent, making the ongoing Chinese demand is a key component of global growth and an important market for exports Latin America. China has rapidly reached an average of 10.3 percent real annual economic growth since 2000, and is now the second largest economy in the world in terms of Gross Domestic Product (GDP) at the official exchange rate. While in 2000, Chinas trade with Latin America was as high as 12 billion U.S. dollars, by 2009, had grown to close to 118 billion dollars. The Economic Commission for Latin America and the Caribbean (ECLAC) estimates that by the year 2015, trade between Latin America and China will exceed the European Union, becoming the second largest export market in the region, behind U.S. In addition, it is estimated that by 2020, China will buy around 20 percent of total exports. Chinas demand for commodities meant that export economies enjoyed an increase in volumes and higher prices for its products which served to shield the economies of the region. It was no coincidence that the Latin American countries with the highest levels of exports to China, including Brazil, Chile, Peru and Argentina, were the countries that recovered more quickly from the recession. In recent years, Chinas imports also increased significantly, particularly by Brazil, Mexico, Chile, Venezuela and Argentina, a rapid rate of increase declined only because of the crisis of 2009. These products are mainly imported from China processed or manufactured goods. In addition, China is also investing in energy and mining projects throughout Latin America. - EconSouth Magazine
Posted on: Mon, 02 Dec 2013 05:53:39 +0000
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