A bridge against the beautiful cityscape of Georgetown in Guyana
Population: 741,300
GNI per capita: $14,920
Total GDP: $21.18 billion
As of 2024, Guyana stands as not only the richest country in South America, but the tenth richest in the world. Having discovered 11 billion barrels of oil off its coast in 2015, Guyana has spent the past few years catapulting toward large amounts of wealth. The country is already currently generating over one billion dollars of revenue per year in oil, which forecasts projects to increase to over seven billion by 2040. This projection makes it one of the fastest-growing economies in the world. Besides oil, Guyana also mines bauxite and gold, and produces many crops such as cassava, corn, bananas, vegetables, and citrus fruits.
2. Chile – $31,005
Skyline of buildings from Bicentennial Park in Santiago
Population: 20,095,000
GNI per capita: $15,360
Total GDP: $333.76 billion
Chile’s macroeconomic policies have allowed it to largely stabilize the economy following the COVID-19 pandemic and halt its high inflation. Its main industries are mining, business and personal services, manufacturing, and retail trade. Mining particularly is a pillar in the Chilean economy, being one of the world’s largest producers of copper, iodine, rhenium, and lithium. Chile alone produces approximately 30% of the world’s annual copper. In terms of growth, the country aims to be more inclusive and greener, although gender gaps in the market remain marked. Wealth inequality remains fairly high in the country as well, although it is within the regional mean.
3. Uruguay – $30,170
Aerial view of the harbor in Punta del Este, Uruguay
Population: 3,459,000
GNI per capita: $18,000
Total GDP: $82.61 billion
Uruguay closely trails behind Chile in ranking and stands out in the region for its egalitarian society. Its rates of poverty and inequality are low, especially compared to the rest of Latin America. Just a little over 10% of the population lives below the poverty line, and the middle class makes up more than 60% of the population. Agriculture is its main industry, representing nearly two-thirds of exports. The most prominent agricultural products and crops are meat, dairy, grains, and timber. Tourism and banking are also large contributors to the economy.
4. Argentina – $26,390
Puerto Madero neighborhood skyline in Buenos Aires
Population: 47,225,000
GNI per capita: $11,590
Total GDP: $604.26 billion
Argentina possesses an abundant amount of natural resources and agriculture that boost its economy and make it one of the most successful on the continent. It manufactures vast quantities of gas, and lithium, has fertile lands used for agricultural production, and is exploring possibilities of further entering the renewable energy industry. However, despite its success with natural resources and agriculture, it has faced tremendous problems from inflation, with the peso falling exorbitant amounts against the dollar. At the beginning of January 2024, Argentina implemented a plan with the International Monetary Fund (IMF) to stabilize the economy and reduce inflation, which has had positive economic effects in the months since.
5. Brazil – $20,809
View of Leme beach and Copacabana beach in Rio de Janeiro.
Population: 205,223,000
GNI per capita: $8,140
Total GDP: $2.33 trillion
In terms of nominal GDP, Brazil is the largest in Latin America. It is prominent in the mining, agriculture, manufacturing, and service sectors. In terms of mining, Brazil is rich in minerals and exports large quantities of iron ore, tin, manganese, gold, and diamonds, among various others. It also manufactures automobiles, steel, electronics, and consumer goods. In terms of Agriculture, Brazil is the world’s largest coffee producer. While Brazil is highly diverse, racial and gender discrimination are very prominent in the labor market. Inequality and poverty are high, with about 21% of residents living under the poverty line.
6. Colombia – $19,770
Skyline of Medellin from the Metro Cable station
Population: 52,848,000
GNI per capita: $6,500
Total GDP: $386.08 billion
Colombia has developed a defined economic framework, a plan to target inflation, and a flexible exchange rate, which has greatly contributed to more stability in their economy. However, despite these actions, their economic growth continues to slow. Social inequality and poverty remain high, and climate change in recent years has affected land and assets, which are areas that the country must address moving forward. Petroleum is the country’s main export, accounting for 45% of Colombian exports. As the world begins to decarbonize and the demand for fossil fuels decreases, Colombia’s economy has also suffered from a demand reduction.
7. Suriname – $18,928
Colonial buildings in Paramaribo, Suriname
Population: 645,300
GNI per capita: $4,970
Total GDP: $4.34 billion
Although small, Suriname is rich in natural resources, with mining representing nearly half the public sector revenue. The country is rich in precious minerals such as gold, whose exportation accounts for over 75% of all exports. Oil is also a promising sector in Suriname, with the government expanding oil production capacity to foster continued industry growth. Despite this abundance of natural resources, Suriname has faced many economic hardships in recent years. The country is very prone to flooding, which historically has had detrimental economic impacts. The COVID-19 pandemic also led to a sharp GDP reduction. These aspects, paired with high inflation and currency instability have left the country vulnerable. However, Suriname has implemented a macroeconomic stabilization program that is already yielding positive results, and the country is hopeful that this progress will continue to enhance the economy in the coming years.
8. Peru – $16,631
Plaza de Armas in Lima, Peru
Population: 34,096,000
GNI per capita: $6,740
Total GDP: $282.46 billion
At the beginning of the 21st century, Peru’s economy grew substantially. Between 2004 and 2013, the poverty rate declined from 60% to 33%. However, in 2014, a reduction in mining prices, paired with the COVID-19 pandemic in 2020, caused the economy to slow down significantly. The country’s economy currently faces various challenges, such as climate change, high inequality, and a heavy dependence on natural resources. Looking forward, Peru must increase the quality of government services and ensure political stability in order to build a more stable economy.
9. Paraguay – $16,291
Presidential Palace drone view in Asuncion, Paraguay
Population: 7,556,000
GNI per capita: $5,920
Total GDP: $45.82 billion
Due to stable macroeconomic management and advantageous external conditions, Paraguay’s economy has grown faster than the Latin American average. The country exports large amounts of agriculture, livestock, and hydropower worldwide. However, since these industries are heavily dependent on exportation, external factors easily affect the economy. The COVID-19 pandemic, for example, was detrimental to economic growth, paired with frequent droughts that have heavily affected production levels. While Paraguay also has succeeded in cutting poverty in half since 2003, the government still has a lot of work to do. Improving infrastructure and education, and continuing to reduce poverty are all goals for the future.
10. Ecuador – $14,485
Aerial view of Puerto Santa Ana in Guayaquil, Ecuador
Population: 17,340,000
GNI per capita: $6,300
Total GDP: $121.59 billion
Ecuador’s economy is heavily dependent on oil resources. In 2017, oil accounted for approximately a third of the country’s exports. In the last few months, organized crime, interruptions in oil production, political instability, and floods have greatly halted economic growth. External factors such as global economic strain and high interest rates have caused their country’s economy to take a hit as well. Ecuador currently finds itself at a bit of a standstill. A lack of political consensus has made it difficult to implement necessary economic reforms to resume growth and better diversify industries, especially as the world moves towards decarbonization.
Final Thoughts
In the wake of challenges such as the COVID-19 pandemic and global inflation, many countries worldwide have struggled to sustain economic growth. However, several South American countries have been making significant strides to advance despite these obstacles. Guyana’s recent oil boom promises a bright future, while Uruguay’s robust efforts to strengthen the middle class and reduce poverty have resulted in the highest GNI per capita in the region. The world will continue to watch as these South American countries shape their policies for the future.
South American Countries By GDP Per Capita (PPP)
Rank
Country
GDP Per Capita (PPP)
1
Guyana
$80,137
2
Chile
$31,005
3
Uruguay
$30,170
4
Argentina
$26,390
5
Brazil
$20,809
6
Colombia
$19,770
7
Suriname
$18,928
8
Peru
$16,631
9
Paraguay
$16,291
10
Ecuador
$14,485
11
Bolivia
$10,693
12
Venezuela
$8,486
Source link : https://www.worldatlas.com/gdp/richest-countries-in-south-america.html
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Publish date : 2024-05-31 07:48:45
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