By Elizabeth MacBride
Brazil, an emerging-market darling just a couple years ago, is crumbling amid economic stagnation and political turmoil. But there’s a far brighter story—one most investors are missing—elsewhere in Latin America.
Four countries—Mexico, Peru, Colombia and Chile—three years ago formed a free-trade bloc called the Pacific Alliance. Tiny Costa Rica joined the club in 2013. Together, they’re a bigger economy than Brazil, and they’re expected to grow three or four times faster than their huge neighbor over the next few years.
Brazil’s $1.7 trillion economy contracted by 0.1 percent in 2014, according to Brazilian central bank data released Thursday, and it’s seen shrinking by 0.5 percent 2015. A corruption scandal at state-controlled Petrobras, the state-controlled petroleum giant, is expected to further hobble the country’s economy.Pacific LatAm rising Country Population GDP past 5 years Predicted 2014/2015 Mexico 115 Million 1.90% 2.4%/3.5% Colombia 47 Million 4.20% 4.8%/4.5% Peru 30 Million 5.50% 3.6%/5.1% Chile 17 Million 4% 2.0%/3.3% Costa Rica 5 Million 3.10% 3.6%/3.6%