September 1, 2012
By Lucien Chauvin
The Andean Community, a four-nation bloc formed by Bolivia, Colombia, Ecuador and Peru, will lead economic growth in South America this year.
Rich in natural resources, the four countries will grow at rates well above the international level thanks primarily to raw material exports.
GDP in Peru expanded by an annualized 6% in the first quarter of the year, while Bolivia expanded by 5.2%, Ecuador by 4.8% and Colombia by 4.7%. Inflation in the four countries began falling in June, and governments are predicting that 2012 will see the lowest inflation rates in years.
Annual growth forecasts initially were higher, but finance ministries have been lowering their foreca
The high-growth Andean economies of Bolivia, Colombia, Ecuador and Peru must ramp up infrastructure investment if they are to harness the full extent of their natural resource wealth