As a consequence, Argentina currently cannot compete against Brazil and ultimately must borrow to remain competitive. If Argentina's reserves begin to be depleted, investors should seriously considering removing their money from the country, he warned. They'll just have to muddle through. The test will come, he says, when the price of oil slows. This is a very protective country, and its economy is less open to the world.
Leach believes that Chile has the best economy of all the South American countries.
President Fujimori is staying on another nine months, but this seems unlikely according to Leach. Be careful here, he warns. Leach sees more privatization occurring, and less investment. Intel has moved into Costa Rica and increased that country's GDP from 2 up to 6-8 percent. Guatemala and El Salvador are on top of the economic pile here, while Nicaragua and Honduras are on the bottom.