Economy of South America
Encyclopedia
The economy of South America comprises around 382 million people living in twelve nations and three territories. It contributes 6% of the world's population.
Since the 1990's, South America has experienced great economic development, with Venezuela
, Colombia
, Argentina
, Uruguay
and Peru
growing their economies by over 8% per annum. Brazil
's economy, on the other hand, is expected to grow by a more sluggish pace in the near future.
South America relies heavily on the exporting of goods. On an exchange rate basis Brazil (the seventh largest economy in the world and the second largest in the Americas) leads the way in total amount of exports at $137.8 billion dollars followed by Chile at $58.12 billion and Argentina with $46.46 billion.
Note: French Guiana
, unlisted here, had a total GDP of US$3.52 billion in 2006.
GDP per capita (PPP) 2011
Note: French Guiana
, unlisted here, had a GDP per capita of US$17,336 in 2006.
National banks offer other figures.
Unemployment rate
(%)>
Paraguay
5.6
Uruguay
7.6
Argentina
7.1
Venezuela
7.9
Ecuador
8.5
Peru
8.1
Brazil
8.1
Bolivia
8.5
Suriname
9.5
Chile
9.6
Colombia
9.8
Guyana
N/A
Source: CIA World Factbook
(or Mercosul in Portuguese), comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela. Associate states include Bolivia, Chile, Colombia, Ecuador and Peru. The second-biggest trade bloc is the Andean Community of Nations
comprising Bolivia, Colombia, Ecuador, Peru, Venezuela and as of 2006 Chile. The Union of South American Nations is expected to merge both trade blocs.
and US dollars.
Table correct as of June 20, 2011; click price to obtain a current quote
Economic development
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
and Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
growing their economies by over 8% per annum. Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
's economy, on the other hand, is expected to grow by a more sluggish pace in the near future.
South America relies heavily on the exporting of goods. On an exchange rate basis Brazil (the seventh largest economy in the world and the second largest in the Americas) leads the way in total amount of exports at $137.8 billion dollars followed by Chile at $58.12 billion and Argentina with $46.46 billion.
GDP ranks as of 2011
GDP (PPP) 2011Note: French Guiana
French Guiana
French Guiana is an overseas region of France, consisting of a single overseas department located on the northern Atlantic coast of South America. It has borders with two nations, Brazil to the east and south, and Suriname to the west...
, unlisted here, had a total GDP of US$3.52 billion in 2006.
| Rank in world | Country | GDP |
|---|---|---|
| 8 | Brazil |
$2,102,018 million |
| 22 | Argentina |
$694,690 million |
| 26 | Colombia |
$484,960 million |
| 34 | Venezuela |
$369,324 million |
| 41 | Peru |
$300,114 million |
| 44 | Chile |
$281,368 million |
| 62 | Ecuador |
$125,066 million |
| 88 | Uruguay |
$52,111 million |
| 89 | Bolivia |
$51,478 million |
| 100 | Paraguay |
$36,235 million |
| 152 | Guyana |
$5,842 million |
| 154 | Suriname |
$5,069 million |
| Source: CIA World Factbook | ||
GDP per capita (PPP) 2011
Note: French Guiana
French Guiana
French Guiana is an overseas region of France, consisting of a single overseas department located on the northern Atlantic coast of South America. It has borders with two nations, Brazil to the east and south, and Suriname to the west...
, unlisted here, had a GDP per capita of US$17,336 in 2006.
| Rank in world | Country | GDP per capita |
|---|---|---|
| 52 | Argentina |
$17,376 |
| 57 | Chile |
$16,171 |
| 61 | Uruguay |
$15,469 |
| 71 | Venezuela |
$12,407 |
| 76 | Brazil |
$11,845 |
| 85 | Peru |
$10,001 |
| 86 | Colombia |
$9,992 |
| 87 | Suriname |
$9,492 |
| 92 | Ecuador |
$8,335 |
| 98 | Guyana |
$7,541 |
| 110 | Paraguay |
$5,548 |
| 119 | Bolivia |
$4,843 |
| Source: List of countries by GDP (PPP) per capita | ||
GNI per capita
- Gross national incomeGross National IncomeThe GNI consists of: the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad , and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the...
(GNI) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employeesCompensation of employeesCompensation of employees is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well...
and property income) from abroad. GNI per capita isCountry GNI
per capita Chile $9,460 Uruguay $9,400 Brazil $8,070 Argentina $7,600 Peru $5,613 Colombia $4,950 Ecuador $3,940 Suriname $3,200 Paraguay $2,280 Bolivia $1,630 Guyana $1,450 Source: World Bank World BankThe World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
External debt 2009
- External debtExternal debtExternal debt is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such...
(or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary FundInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and World Bank.Rank in world Country External Debt 26 Brazil $216.1 billion 33 Argentina $118.0 billion 47 Chile $49.18 billion 48 Colombia $46.44 billion 49 Venezuela $43.30 billion 63 Peru $27.81 billion 73 Ecuador $13.28 billion 75 Uruguay $12.61 billion 108 Bolivia $3.80 billion 117 Paraguay $3.220 billion 152 Guyana $804.3 million (30 September 2008 est.) 159 Suriname $504.3 million (2005 est.) Source: CIA World Factbook
Annual economic growth
- Expected for 2010 according to the CIA.
Country Annual economic growth (%) Bolivia 4.2% Guyana 3.6% Suriname 4.4% Uruguay 6.5% Peru 6.8% Colombia 5.4% Brazil 3.9% Ecuador 3.2% Chile 5.3% Argentina 5.5% Venezuela -0.9% Paraguay 4.2% Source: List of countries by GDP (real) growth rate
National banks offer other figures.
Unemployment rate (lowest to highest)
(%)>
Paraguay Uruguay Argentina Venezuela Ecuador Peru Brazil Bolivia Suriname Chile Colombia Guyana Poverty line (lowest to highest)
| Year of estimate | Country | Population below poverty line (%) |
|---|---|---|
| 2009 | Chile |
11.5 |
| 2009 | Paraguay |
18.8 |
| 2009 | Uruguay |
20.9 |
| 2008 | Brazil |
26 |
| 2010 | Argentina |
30 |
| 2010 | Peru |
30 |
| 2010 | Ecuador |
33.1 |
| 2011 | Colombia |
29.2 |
| 2005 | Venezuela |
37.9 |
| 2011 | Bolivia |
49.0 |
| 2002 | Suriname |
70 |
| N/A | Guyana |
- |
| Source: CIA World Factbook | ||
Annual inflation
| Country | Annual inflation(%) |
|---|---|
| Peru |
1.80% |
| Ecuador |
2.20% |
| Brazil |
9.60% |
| Chile |
4.40% |
| Colombia |
3.30% |
| Suriname |
6.40% |
| Paraguay |
8.10% |
| Uruguay |
8.10% |
| Bolivia |
8.70% |
| Argentina |
8.80% |
| Guyana |
12.20% |
| Venezuela |
23.70% |
Public debt (lowest to highest)
- Refers to what is owed by the combined public sector to both domestic and foreign creditors.
Country Public debt (% of GDP) Chile 6.10 Venezuela 18.0 Ecuador 22.10 Paraguay 24.10 Peru 24.80 Bolivia 42.00 Colombia 45.80 Argentina 48.60 Uruguay 56.60 Brazil 60.00 Guyana N/A Suriname N/A Source: CIA World Factbook
Trade blocks
The biggest trade block in South America is MercosurMercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
(or Mercosul in Portuguese), comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela. Associate states include Bolivia, Chile, Colombia, Ecuador and Peru. The second-biggest trade bloc is the Andean Community of Nations
Andean Community of Nations
The Andean Community is a customs union comprising the South American countries of Bolivia, Colombia, Ecuador and Peru. The trade bloc was called the Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in 1969...
comprising Bolivia, Colombia, Ecuador, Peru, Venezuela and as of 2006 Chile. The Union of South American Nations is expected to merge both trade blocs.
Currency
Below is a list of the currencies of South America, with exchange rates between each currency and both the euroEuro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
and US dollars.
| Country | Currency Currency In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply... | 1 Euro Euro The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,... = | 1 USD = | Central bank Central bank A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries... |
|---|---|---|---|---|
| Argentina |
Argentine peso Argentine peso The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS... (ARS) |
5.65 | 4.20 | Central Bank of Argentina http://www.bcra.gov.ar/ |
| Bolivia |
Bolivian boliviano Bolivian boliviano The boliviano is the currency of Bolivia. It is divided into 100 centavos. Boliviano was also the name of the currency of Bolivia between 1864 and 1963.-First boliviano:... (BOB) |
11.0985 | 7.57080 | Central Bank of Bolivia Central Bank of Bolivia The Central Bank of Bolivia is the central bank of Bolivia, responsible for monetary policy and the issuance of banknotes. The current president of the BCB is Marcelo Zabalaga Estrada.The official site is http://www.bcb.gob.bo.-History:... http://www.bcb.gov.bo/ |
| Brazil |
Brazilian real Brazilian real The real is the present-day currency of Brazil. Its sign is R$ and its ISO code is BRL. It is subdivided into 100 centavos .... (BRL) |
2.58963 | 1.76650 | Central Bank of Brazil Central Bank of Brazil The Central Bank of Brazil is Brazil's monetary authority. It was established on December 31, 1964.The Central Bank is linked with the Ministry of Finance. Like other central banks, the Brazilian central bank is the principal monetary authority of the country... http://www.bcb.gov.br/ |
| Chile |
Chilean peso Chilean peso The peso is the currency of Chile. The current peso has circulated since 1975, with a previous version circulating between 1817 and 1960. The symbol used locally for it is $. The ISO 4217 code for the present peso is CLP. It is subdivided into 100 centavos, although no centavo denominated coins... (CLP) |
701.020 | $507.580 | Central Bank of Chile Central Bank of Chile The Central Bank of Chile is the central bank of Chile. It was originally created in 1925 and is incorporated into the current Chilean Constitution as an autonomous institution of constitutional rank.-History:... http://www.bcentral.cl/eng/ |
| Colombia |
Colombian peso Colombian peso The peso is the currency of Colombia. Its ISO 4217 code is COP and it is also informally abbreviated as COL$. However, the official peso symbol is $. As 20 July 2011, the exchange rate of the Colombian peso is 1750 Colombian pesos to 1 U.S. dollar.-History:The peso has been the currency of Colombia... (COP) |
2,593.20 | 1,885.74 | Bank of the Republic Bank of the Republic (Colombia) The Bank of the Republic is the state-run central bank of the Republic of Colombia. Its main functions are detailed by the Congress according to the . One of them is the issuance of the Colombian currency, the peso.-History:... http://www.banrep.gov.co/ |
| Ecuador |
U.S. dollar United States dollar The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies.... (USD) |
1.46611 | 1 | Federal Reserve http://www.federalreserve.gov/ |
| Guyana |
Guyanese dollar Guyanese dollar The Guyanese dollar has been the unit of account in Guyana since 29 January 1839. Originally it was intended as a transitionary unit to facilitate the changeover from the Dutch guilder system of currency to the British pound sterling system... (GYD) |
297.547 | 202.950 | Bank of Guyana Bank of Guyana The Bank of Guyana is the central bank of Guyana. It was established in 1965 in advance of the country's independence in 1966.The Bank's logo is divided into four sections, representing the industries of rice , timber , shipbuilding and minerals .The Bank of Guyana was established by virtue of the... http://www.bankofguyana.org.gy/ |
| Paraguay |
Paraguayan guaraní Paraguayan guaraní The guaraní is the national currency unit of Paraguay. The guaraní was divided into 100 céntimos but, because of inflation, céntimos are no longer in use.The currency sign is .-History:... (PYG) |
6,802.74 | 4,640.00 | Central Bank of Paraguay Central Bank of Paraguay The Central Bank of Paraguay is Paraguay's highest monetary authority in, and the country's governing body in, finances and economics. Its headquarters are in Asunción. The institution was created by Law 18/52 of March 25, 1952... http://www.bcp.gov.py/ |
| Peru |
Peruvian nuevo sol Peruvian nuevo sol The nuevo sol plural: nuevos soles; currency sign: S/.) is the currency of Peru. It is subdivided into 100 cents, called céntimos in Spanish. The ISO 4217 currency code is PEN. It is most commonly referred to just as sol... (PEN) |
4.26966 | 2.72440 | Central Reserve Bank of Peru http://www.bcrp.gob.pe/ |
| Suriname |
Surinamese dollar (SRD) | 4.10543 | 2.80000 | Central Bank of Suriname Central Bank of Suriname The Central Bank of Suriname is Suriname's highest monetary authority and the country's governing body in monetary and economic affairs.The Central Bank's tasks were legislated in the Bank Act of 1956. Like other central banks, it is the principal monetary authority of the country... http://www.cbvs.sr/ |
| Uruguay |
Uruguayan peso Uruguayan peso Uruguayan peso has been a name of the Uruguayan currency since Uruguay's settlement by Europeans. The present currency, the peso uruguayo was adopted in 1993 and is subdivided into 100 centésimos.-Introduction:... (UYU) |
31.1529 | 21.2470 | Central Bank of Uruguay Central Bank of Uruguay -History:The Central Bank of Uruguay was established on July 6, 1967 as an autonomous state entity , with the passing of the 196th article of the República Oriental del Uruguay's Constitution.... http://www.bcu.gub.uy/ |
| Venezuela |
Venezuelan bolívar fuerte Venezuelan bolívar The bolívar fuerte is the currency of Venezuela since 1 January 2008. It is subdivided into 100 céntimos and replaced the bolívar at the rate of Bs.F. 1 = Bs... (VEF) |
6.16331 | 4.30000 | Central Bank of Venezuela Central Bank of Venezuela The Central Bank of Venezuela is the central bank of Venezuela. It maintains a fixed exchange rate for the Venezuelan bolívar.-External links:*... http://www.bcv.org.ve/ |
Table correct as of June 20, 2011; click price to obtain a current quote
Agriculture
Main products include: Coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus, beef, bananas and shrimp are also important agricultural products for many countriesManufacturing
Industries are also important to South America’s economy. Most South American factories produce food items, consumer goods, or building materials. More developed countries also produce cars, trucks, and airplanes. Some of these companies import all the parts and raw materials needed for manufacturing which limits the amount of profits they can receive for the item. An important factor that is crucial to the success of industries is importing and exporting. The organization called Mercosur helps to expand trade, improve transportation, and reduce tariffs among member countries. The Andean Community mimics such cooperation, but limits exist due to crucial road barriers.Transport
At the beginning of August 2008, there was a horse for sale Venezuelan president Hugo Chavez and his colleagues from Argentina and Brazil spoke about Latin American integration and Chavez threw an ambitious idea out: a train that would connect Venezuela's capital (Caracas) with Argentina's (Buenos Aires), and cities in between.Economy by country
Economy of:
|
Economy of Ecuador The economy of Ecuador is based mostly on exports of bananas, oil, shrimp, gold, other primary agricultural products and money transfers from nearly a million Ecuadorian emigrants employed abroad. In 2002, oil accounted for about one-third of public sector revenue and 40% of export earnings... Economy of French Guiana The economy of French Guiana is tied closely to that of France through subsidies and imports. Besides the French space center at Kourou, fishing and forestry are the most important economic activities. The large reserves of tropical hardwoods, not fully exploited, support an expanding sawmill... Economy of Guyana With a per capita gross domestic product of only $4,700 in 2006, Guyana is one of the poorest countries in the Western Hemisphere. This is evident from the contrast between poor slum areas and elite residential areas with imperious mansions, often built within a few miles of one another. The... Economy of Paraguay Paraguay has a market economy characterized by a large informal sector. Agriculture dominates the economy, but unequal land distribution has resulted in a large class of peasant farm laborers. A large portion of the population is uninvolved in the formal economy, instead existing as subsistence... |
Economy of Peru The economy of Peru is classified as upper middle income by the World Bank and is the 42nd largest in the world. Peru is, as of 2011, one of the world's fastest-growing economies owing to the economic boom experienced during the 2000s... Economy of Suriname Suriname was ranked the 124th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.- Bauxite :The backbone of the economy of Suriname is the export of aluminium oxide and small amounts of aluminium produced from bauxite mined in the country... Economy of Uruguay Economy of Uruguay is characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. After averaging growth of 5% annually during 1996-98, in 1999-2002 the economy suffered a major downturn, stemming largely from the spillover effects of the... Economy of Venezuela The economy of Venezuela is largely based on the petroleum sector and manufacturing. Revenue from petroleum exports accounts for about 18% of the country's GDP and roughly 95% of total exports. Venezuela is the fifth largest member of OPEC by oil production. From the 1950s to the early 1980s the... |
See also
- South AmericaSouth AmericaSouth America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
- South America Life Quality Rankings
- South America Life Quality Rankings - Economy and Finance
- South America Life Quality Rankings - Law and Justice