The 'economy of South America' comprises about 500 million people living in 14 states and territories.
Economic development
As of early 2007, South America is experiencing great economic development, with
Venezuela,
Argentina,
Uruguay and
Perú growing their economies by over 8% per annum.
Chile is also experiencing continued growth of 6% for the last few years on the back of
copper prices.
Brazil's economy, on the other hand, is expected to grow by a more sluggish pace during the year.
GDP ranks as of 2005
'GDP (PPP) 2005'
'GDP per capita (PPP) 2005'
| Rank in world | Country | GDP
per capita |
|---|
| 50 | Argentina | 14,109 |
| 56 | Chile | 12,983 |
| 65 | Uruguay | 10,028 |
| 68 | Brazil | $9,108 |
| 81 | Colombia | 7,565 |
| 96 | Venezuela | 6,186 |
| 97 | Peru | 5,983 |
| 99 | Ecuador | 5,816 |
| 101 | Suriname | 5,683 |
| 105 | Guyana | 4,612 |
| 107 | Paraguay | 4,555 |
| 125 | Bolivia | 2,817 |
| Source: List of countries by GDP (PPP) per capita |
Regional variation
Brazil, Argentina, Colombia and Chile, in this order, have the largest economies in South America, while Argentina, Chile and Uruguay have the best
HDI of South America. Venezuela, in turn, has large oil reserves that have turned the nation into an important player in world trade.
Trade blocs
The biggest Trade Bloc in South America is
Mercosur, 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.
Currency
Below is a 'list of the currencies of South America', with exchange rates between each currency and both the
Euro and
US Dollars. It is planned to have a yet unamed South American currency and central bank in
Brasília.
''Table correct as of
November 22 2005; click price to obtain a current quote''
Reference
★
xe.com Universal Currency Converter provides latest figures.
Economic sectors
Agriculture
Manufacturing
Industries are also important to Latin America’s economy. Most South American factories produce food items, consumer goods, or building materials. Larger 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. An organization called Mercosur helps to expand trade, improve transportation, and reduce tariffs among member countries.
Investing and banking
Due to histories of high inflation in nearly all South American Countries interest rates and thus investment remain high and low respectively. The important exception is
Chile, which has had a head start from 1973 with low inflation, high growth, and unfortunately high unemployment economic policies under
Augusto Pinochet.
This bad history remains with interest rates usually double that of the
U.S. in
Argentina because of its 2002 economic crisis and 80% inflation at that time, but fortunately the economy appears to have normalized since then (except for widespread tax evasion in the country). However, The Argentine's government's default on its loans has left it with a bad credit standing in the IMF.
Other countries with high inflation in South America are Venezuela at 22.4% and Suriname at 23%.
Global trade relations
Argentina has payed to the IMF and there is no more debt left
Economy by country
'Economy of:'
See also
★
South America
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