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7.6.4 Latin America

Average Latin American MBA graduate salaries have increased by 27% from 1996-2006, to US $ 69,400 (US $ 62,600). In Latin America, a series of currency devaluations negatively
impacted on the reporting of MBA salaries in US dollars, holding back the figures in 2003-05, but as currencies strengthen, their dollar values are now catching up with other regions.

Figure 23 shows how salary levels in Latin America have risen and fallen regularly since 1996, but based on the trend of the last three years, average MBA salaries should exceed US $ 70,000 for the first time by next year. Volatility is, however, a feature of the region. A little over a decade ago, it seemed that Latin America had escaped the trap of poverty. Foreign direct investment and trade surpluses buoyed the major nations of the region and prospects for the future looked bright. The dot.com boom experienced by the rest of the world, however, had negligible impact here. Instead, a series of economic shocks and destabilisations haunted major Latin American nations through the turn of the century.

Latin America returned in 2002 to the salary offers of 1999 only to fall again in 2003. Since then, however, the trend is upward again and, with many business schools in the region and a growing population, Latin America looks to be set for greater salary gains in the future. The 2003 Argentine devaluation, against a backdrop of recession and hyperinflation, may be a temporary setback, but a much-needed correction. The settling of the strikes in Venezuela and the success of the war on drugs in Colombia were positive outcomes in 2004.

There are further encouraging signs for the region in 2007 with employment rising in Brazil and GDP per capita rising across the region. A weaker US dollar has helped lift exports and reduce debt burdens, encouraging more inward investment. MBA salary gains have reflected these improved conditions.

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QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2007
© QS Quacquarelli Symonds Ltd. 2007
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