MBA salaries in Latin America

Latin American MBA salaries have tended to lag behind other major regions in recent years. This has been a result of economic struggles in the region coupled with a less mature MBA job market in comparison to North America or Western Europe, for example. Thankfully our Jobs and Salary Trends Report 2018 shows that recovery from the recent dip is underway, and prospects for continued growth look good.

MBA salaries

Latin American MBA salaries grew by 6% in the last year, now standing at around US$62,500 and US$75,900 when bonuses are included. This represents the highest value MBA salaries the region has ever achieved, despite varying economic prospects in the region’s individual countries. However, compared to the rest of the world, MBA salaries across Latin America still fall short.

Demand is growing

Nevertheless, job growth and MBA recruitment are growing. Demand for business school graduates in the consulting and professional services grew by 5% this year; in financial services, demand grew by a whopping 20%; and in technology, by 7%. Future projections are also strong, with predictions in 2018 for 23% growth in the financial sector and 29% growth in consulting.

On a country-by-country basis, it’s a mixed success story. Brazil, the biggest economy in Latin America, saw a significant increase in recruitment demand, buoyed in part by the 2016 Rio Olympics, whereas Mexico saw a small decrease as the country continues with its austerity drive.

Economic prospects

Latin America’s economies have struggled in recent years. In the period 2000-2015, they developed at a slower rate than any other developing region in the world. This has been exacerbated by an economic crisis in the largest economy - Brazil - over the last two years. However, the region’s economy is expected to grow 1.2% in 2017, which would be the highest rate since 2013 - suggesting that change might be coming. This is supported by individual country growth, Argentina’s economy grew 4.3% year-on-year; Colombia’s economy is predicted to grow up to 2.5% in the third quarter of this year; and Brazil has slowed the pace of monetary easing to encourage the country’s economic recovery. However, those nations with particularly fraught political situations, such as Venezuela, are impacting the overall regional growth.