Impact of Latin America on U.S. and Europe

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Impact of Latin America on U.S. and Europe

• International Real Estate Congress
• Nov. 4, 2008

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Latin Trade Community
Today
USA
Latin America
160,000
June 2006 BPA Audit
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Impact of Latin America on U.S. and Europe

• Better shape than the past
• Corporate more concern than governments
• Cash has always been king
• Closer to consumer, more challenges
• Farther away from prime location, more difficult
  
• Local currencies to devalue

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World Outlook Slower Growth
GDP per capita
GDP USBillions
Pop. millions
Inflation
GDP
Source IMF
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Politics
6
Exchange Rate
GDP
Year ago
Change
Oct. 20
2007 2008 2009
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Key Trends in Region

• Financial Crisis North to south impact
• Economies still growing
• Real estate a cash/equity business, not credit
• Prime property deficit in most major cities/ports
• Euro/US-targeted developments hardest hit

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Latin America as Real Estate Buyer

• Residential prime locations
• Flight to quality
• Argentina, Venezuela
• Brazil, Mexico??
• Corporate locations
• Multi-latinas US/Euro operations

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Mike ZellnerEditorial Director Latin Trade

• Mike_at_latintrade.com