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Latin Trade, Dec, 2006 by Camilla Stivelberg

The New Year will be a properous one for many Latin Americans. Salaries in 2007 are expected to climb. According to a poll conducted by Mercer Human Resource Consulting, salaries worldwide will rise 5.9% next year, outpacing inflation by 1.9%. Latin Americans should see some of the world's biggest pay increases, even amid rising consumer prices.

Venezuela leads the pack when it comes to salary hikes in the region, although the inflation rate there is growing at close to the same pace. Argentines Hill earn 11.8% more in 2007, although most clock-punchers won't feel much change: As the domestic economy booms on a long-delayed recovery, inflation there will far outpace raises.

"Paraguay and Uruguay have been for the last three years the countries that have the most stable economies, with gross domestic product growing steadily. Inflation in those countries is low at around 5%, and it doesn't interfere with development," says Alberto Mondelli, a director at Mercer.