Economic Outlook for South America and The Caribbean
The inequality among global economies has kept many countries poor. The economic and political instability has affected various economies across different regions over the years. Africa is one of the poorest continents with a large number of poor countries. The poorest countries in South America and the Caribbean are comparatively way richer than several poorest African countries. For instance, the poorest country in Africa is South Sudan, with a GDP per capita of $475.81. The poorest country in South America and the Caribbean is Haiti, which has a GDP per capita of $3,190, as of December 2023, according to data from the IMF.
Overall, the regional economic outlook seems positive. Over the past three decades, South America and the Caribbean achieved significant progress in macroeconomic resilience. The region has shown remarkable flexibility against economic shocks including inflationary pressures, rising debt, low commodity prices, and global uncertainty - in addition to the aftereffects of the COVID-19 pandemic. According to the IMF’s regional outlook for South America and the Caribbean, the continent has shown a stronger-than-expected recovery from the COVID-19 pandemic and continued resilience in early 2023. Core inflation is also slowing down in the region following timely monetary tightening since 2021. Inflation in South America and the Caribbean is expected to drop from 14.6% in 2022 to 13.6% in 2023 and continue a downward trajectory to 8.8% in 2024.
The region's economic growth is forecasted to decline by the end of 2023 and bottom out in 2024. As per estimates from the IMF, real GDP growth is expected to drop from 4.1% in 2022 to 2.3% in 2023 and 2024. In countries including Brazil, Chile, Colombia, Mexico, and Peru, the accumulated growth rate is expected to decline from 3.7% in 2022 to 2.6% in 2023 and 1.9% in 2024. While, the growth rate in Central America, Panama, and the Dominican Republic is projected to be 17% in 2023 and slow down modestly to 16.3% in 2024. Guyana is one of the fastest growing economies in the world in 2023 and the only economy from South America and the Caribbean that will continue to grow swiftly at a solid growth rate.
Some of the prominent downside risks that hop over South America and the Caribbean include monetary and fiscal policy slippages, the return of inflationary pressures, and global tensions. The poor economies in the region are already facing the heat of slow economic recovery. The trade economy will be a key supporter for the region. China is one of the major economic partners of the Latin American nations after the US. China shares a key trading relationship with many South American countries. According to Deloitte, the total trade between China and Latin America soared from $12 billion to $310 billion between 2000 and 2022, growing at an average annual growth rate of 15.9%. The trade relations between China and Latin American countries will be a key driver in the recovery of the region.
Key Players in Latin America
Some of the key players that play a major role in the economy of South America and the Caribbean include Cementos Argos S.A. (OTC:CMTOY), Vale S.A. (NYSE:VALE), and Petróleo Brasileiro S.A. (NYSE:PBR). These companies have important roles in their respective markets.
Cementos Argos S.A. (OTC:CMTOY) is a top Colombian construction materials and cement producer. On December 1, Cementos Argos S.A. (OTC:CMTOY) reported that the company has built more than 300 homes with its modular concrete construction system. Cementos Argos S.A. (OTC:CMTOY) has established one of its type modern plants in Latin America in Cajicá, Cundinamarca. The plant creates almost 150 direct jobs and more than 500 indirect jobs. On November 27, Cementos Argos S.A. (OTC:CMTOY) in collaboration with Comfama launched Vesta to support housing for Antioquia. The leader of Vesta on behalf of Cementos Argos S.A. (OTC:CMTOY) said:
“We are convinced that this initiative has all the strength to contribute to closing social gaps, materializing our purpose of making possible the construction of housing and infrastructure dreams that enable a more sustainable, prosperous, and inclusive society. This, without a doubt, is possible thanks to the integration of efforts of different companies that are committed to innovation as an enabler that generates a positive impact on the quality of life of the communities, who are at the center of our strategy.”
Vale S.A. (NYSE:VALE) is a leading corporation engaged in metals and mining. Vale S.A. (NYSE:VALE) also plays a vital role in logistics in the region. On November 30, Vale S.A. (NYSE:VALE) announced the beginning of its first biofuel voyage on a bulk vessel in collaboration with Oldendorff Carriers. On November 22, Vale S.A. (NYSE:VALE) announced the maiden voyage of the Berge Olympus, a Newcastlemax bulk carrier. The Berge Olympus will save an average of 6 tonnes of fuel per day on the global route and reduce CO2 emissions by almost 19.5 tonnes per day.
Petróleo Brasileiro S.A. (NYSE:PBR) is a top petroleum company in the region. On December 4, Petróleo Brasileiro S.A. (NYSE:PBR) announced that it signed an agreement with the Government of the State of Rio de Janeiro to install a CO2 capture and storage hub. The company is working on decarbonization solutions in the region. On December 8, Italian firm, Prysmian S.p.A. (BIT:PR), obtained a contract worth €100 million for the provision of umbilicals and steel tubes. Petróleo Brasileiro S.A. (NYSE:PBR) is powering the energy economy in the region. The CCO Projects BU Prysmian Group, Detlev Waimann, said:
“This award confirms the mutual trust and long-standing relationship between Petrobras and Prysmian Group, as it is the latest of several projects developed for the Brazilian energy company. This contract further highlights the joint path undertaken towards a safer and more efficient use of resources.”
These were a few top companies from South America and the Caribbean that continue to play an important role in the regional economy. Now, let’s take a look list of the poorest countries in South America and the Caribbean.
15 Poorest Countries in South America and the Caribbean
Rio de Janeiro, Brazil
Our Methodology
We have used GDP per capita (PPP) for countries to rank the 15 poorest countries in South America and the Caribbean. As a simple definition, PPP is calculated by subtracting price differences and nominal changes in the local currency and the US dollar. The figures are from 2023 and were sourced from the International Monetary Fund (IMF).
We ranked the countries in descending order of the GDP per capita (PPP) in 2023. We have also mentioned the GDP (PPP) data for each country, which is also taken from the IMF.
15 Poorest Countries in South America and the Caribbean
15. Brazil
GDP Per Capita (2023): $20,080
Brazil is one of the largest economies in South America. The country has a GDP of $4.1 trillion and a GDP per capita of $20,080. Brazil is placed at 15th among the poorest countries in South America and the Caribbean.
14. Colombia
GDP Per Capita (2023): $19,480
Colombia is another major economy of South America. The country has a GDP of $1.02 trillion. With a GDP per capita of $19,480, Colombia is one of the poorest countries in South America and the Caribbean.
13. Suriname
GDP Per Capita (2023): $18,310
Suriname is a small country on the northeastern coast of South America. The country has a GDP of $11.44 billion and a GDP per capita of $18,310. Ranked 13th on our list, Suriname is one of the poorest countries in South America and the Caribbean.
12. Peru
GDP Per Capita (2023): $15,890
Peru is home to the section of the Amazon rainforest and Machu Picchu. The South American country has a GDP of $548.47 billion. Peru’s GDP per capita of $15,890 places it among the poorest countries in South America and the Caribbean.
11. Paraguay
GDP Per Capita (2023): $15,530
Paraguay is a landlocked country between Argentina, Brazil and Bolivia. The country has a GDP of $117.35 billion and a GDP per capita of $15,530. Paraguay is one of the poorest countries in South America and the Caribbean.
10. Ecuador
GDP Per Capita (2023): $13,290
Located along South America’s west coast, Ecuador has a GDP of $242.58 billion. Ecuador’s GDP per capita of $13,290 places it in the 10th spot among the poorest countries in South America and the Caribbean.
9. Jamaica
GDP Per Capita (2023): $12,990
Jamaica is one of the poorest countries based out of the Caribbean. The country has a GDP of $35.69 billion and a GDP per capita of $12,990. Ranked ninth on our list, Jamaica is one of the poorest countries in South America and the Caribbean.
8. El Salvador
GDP Per Capita (2023): $11,720
El Salvador is a Central American country having a GDP of $74.51 billion. The country has a GDP per capita of $11,720 and places El Salvador among the poorest countries in South America and the Caribbean.
7. Belize
GDP Per Capita (2023): $11,170
Belize is located on the eastern coast of Central America. The country has a GDP of $5.03 billion and a GDP per capita of $11,170. Belize is ranked seventh among the poorest countries in South America and the Caribbean.
6. Guatemala
GDP Per Capita (2023): $10,600
Located south of Mexico, Guatemala is a Central American country having a GDP of $201.37 billion. With a GDP per capita of $10,600, Guatemala is one of the poorest countries in South America and the Caribbean.