International Banking - Annual Overview
LATIN AMERICA
Attractive growth opportunity for the Bank
Pacific Alliance
。 Identified as a key area of growth for the Bank
。 Reflects a trade bloc with a free trade agreement to liberalize commerce and
improve integration among Mexico, Peru, Chile, and Colombia (and it is
expanding)
。 The strategic purpose is to strengthen trade flows with Asia and to compete with
Brazil and Argentina, which participate in Mercosur
。 The Pacific Alliance accounts for 36% of Latin America's GDP, comparable to
Brazil
Canada has bilateral free-trade agreements with all four Pacific Alliance countries
and it has initiated an application for Associate Membership in the Alliance
• Presents an Attractive Long-Term Opportunity
o Reflects the 7th largest goods exporter
。 Trade bloc with respective governments supporting growth/significant
infrastructure spending
Strong and favourable relative GDP growth rates
Considerable room to increase banking penetration (avg. domestic credit/GDP of
66%)
。 Fast-growing middle-class with increasing financial needs
。 Favourable demographics for banking needs (median age of 30 years old)
。 Relatively stable legal, tax and regulatory infrastructure in place
。 Central bankers have earned credibility and banking system is well-capitalized
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