A provisional forecast by the World Bank of a 5% growth in 2010 for the region has been increased to 6% based upon increased activity in Brasil, Peru, Chile and Colombia - Brazil is leading the pack with 7% growth. Venezuela is the only country showing a contracting economy, despite high oil prices.
The majority of this growth is credited to China's enormous demand/need for raw materials. However, this huge growth could lead to overheating and inflation, while attention is drawn to the lack of investment in research and development, with the exception of Brasil, all Latin American countries currently invest less than 1% of GDP. Furthermore, with the exception ofMexico, Uruguay, Argentina and Chile, the regional governments do not have innovation as a national priority.
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