Latin America Macro Indicators Real GDP Growth (%) Downturn anticipated 12 10 8 6 4 2 Reserves ($ billions) Region finally saving 450 400 350 300 250 200 150 Venezuela Peru Mexico Colombia Chile Brazil Argentina 0 Argentina -2 -4 1980-1990 Brazil 1991-1997 Chile Colombia 1998-2003 Mexico Peru 2004-2007 2008e Venezuela 100 50 0 1980-1990 1991-1997 1998-2003 2004-2007 2008e Source: International Institute of Finance Source: International Institute of Finance Consumer Price Average (%) Venezuela and Argentina prices rising 1980-1990 Argentina 804.3 Brazil 535.3 Chile 21.3 Colombia 24.1 Mexico 66.1 Peru 1,175.1 Venezuela 25.1 1991-1997 1998-2003 16.4 6.9 760.0 8.5 10.5 3.0 22.3 9.3 20.1 9.0 39.9 2.9 53.9 22.3 2004-2007F 2008E 9.3 15.0 4.5 4.0 2.8 3.6 5.0 4.5 4.0 3.7 2.0 2.5 17.6 15.8 Historical AUM for Pension Funds - ($ billions) Ballooning local coffers Brazil Chile Argentina Mexico (Afores) Colombia (AFPs) Peru (AFPs) TOTAL 2003 2004 4.9 96.3 49.7 60.8 16.0 18.2 35.0 42.1 9.40 14.1 6.40 7.90 191.4 239.4 2005 126.4 74.8 22.4 55.2 19.8 9.50 308.2 2006 141.3 88.6 29.2 66.3 23.8 14.4 363.5 Nov 07 CAGR 230.7 18% 101.1 19% 29.3 6% 72.8 18% 25.2 25% 18.6 31% 424.6 18% Source: International Institute of Finance, Santander Investment Source: Santander Investment, Abrapp Equity Market Capitalization ($ billions) Brazil takes over Argentina Brazil Chile Colombia Mexico Peru Venezuela TOTAL 1980-1990 0.3 8.2 1.2 0.0 0.0 0.0 0.8 10.5 1991-1997 37.1 142.5 54.4 12.5 131.7 8.0 8.5 394.6 1998-2003 38.7 191.5 62.2 11.9 120.7 12.4 i 6.7 444.1 2004-2007F 46.5 505.1 142.6 42.9 259.4 38.8 8.5 1,043.7 External Debt as % of GDP Reductions across the board 1980-1990 50.4 38.0 74.7 45.3 48.3 56.1 62.6 53.6 1991-1997 1998-2003 2004-2007F 2008E 37.1 83.8 84.8 38.6 30.0 39.4 26.8 13.4 38.9 53.3 42.5 30.7 38.2 44.1 34.8 16.6 42.6 29.6 22.4 12.1 65.7 52.2 37.4 26.3 58.0 37.1 32.1 13.1 44.4 48.5 40.1 21.5 Argentina Brazil Chile Colombia Mexico Peru Venezuela AVERAGE Source: International Institute of Finance, Santander Investment Source: International Institute of Finance, Santander Investment 106 LATINFINANCE May 2008