The economic outlook for Latin America shows a relatively rosy picture for the coming years.

This is notwithstanding some uncertainty linked to a possible slowdown in Europe and the United States, both important trading partners, according to the Global Competitiveness Report for 2011-2012, published by the World Economic Forum of Geneva, Switzerland.

With a growth rate of around 6% in 2010 and expected rates of 4.75% in 2011 and 4.25% in 2012, the region has closed the output gap and the excess of capacity generated during the recession years, outperforming most advanced economies. And, in some commodity-exporting countries—such as Chile and Brazil, where economic growth rates could reach 6.5% and 4.1 percent, respectively, signals of overheating are coming from higher inflation.

The Global Competitiveness Report grades countries using an array of metrics that include quality of legal and administrative institutions, infrastructure, education, efficiencies of markets for labor and goods, developments of financial markets, business sophistication and innovation.

Big jumps in competitiveness rankings for nations such as Mexico, Peru, Brazil and Panama indicate that the competitive spirit can thrive in Latin America. Long term, that climate should help produce lucrative returns for those who select the right investments in countries with positive competitive environments.

Read more in the attached weekly update and ...

Happy trading this week!

Rudy