The majority of the countries in South America are quite poor. Suriname, Bolivia, and Guyana are the nations with the greatest per-capita rates of poverty. Improvements have been brought about in several of these nations by recent political changes in the region.
Most economies in South America have generally made an effort to combat poverty by enacting microeconomic policies to lessen poverty, tighter economic regulations, and foreign direct investments.
Down below are the five poorest countries in South America based on GDP per capita.
Bolivia, $3,345
In terms of GDP per person, Bolivia ranks as the second poorest nation in South America. According to data from the International Monetary Fund, the country’s per capita income in 2018 was $3,345. It is situated in the west-central region of the continent. The financial and economic centre of Bolivia is Santa Cruz, de la Sierra.
Since tin mining was a significant source of revenue for Bolivia in the 1980s, the economy had a severe setback at that time. The economy has just recovered, though, and is currently going through a growth phase. The Bolivian government’s intelligent economic policies have aided in this expansion.
Suriname, $4,869
With a per capita income of $4,869, Suriname ranks second lowest in South America. The country’s estimated poverty rate is close to 50%. The nation, a former colony of the Netherlands, depended on assistance from that nation until 2014. Despite the nation’s abundance of natural resources, it hasn’t been able to reach its full capabilities.
Ecuador, $5,965
Ecuador, a country in the northwest of South America, has the third-lowest GDP per person on the continent, at $5,965. Agriculture-related products and petroleum are essential for the survival of the nation’s developing, middle-income economy.
Between 2007 and 2012, the nation’s GDP increased by 4.3% annually on average. Additionally, during the past few years, unemployment rates have considerably decreased.
By 2011, the rate of extreme poverty had decreased to 17.4% from 40% in 2001.
Paraguay, $5,891
Paraguay ranks fourth in terms of the poorest countries in South America. The National surveys show that 23.8% of the population in Paraguay lives below the poverty line and that 4% of the population is very poor; the UN Human Development Index found that 10.3% of Paraguayans live in absolute poverty.
Migration, linguistic barriers, and the absence of a uniform welfare system are issues this nation faces in relation to poverty. Rural areas, where the majority of the poor population lives, also have insufficient water and sanitation systems, which makes it more likely for the poor to get sick as a result of their unhygienic way of life.
Guyana, $9,998
The fifth-weakest country on the South American continent is Guyana. The GDP per person there was $4,689 in 2018. The nation sits in the northernmost portion of South America’s main island, but due to its strong historical, cultural, and political ties to the Caribbean, it is frequently referred to as a Caribbean country.
The nation’s main economic activities include farming, mining, and fishing. The lack of qualified workers and suitable infrastructure impacted the nation’s economy. Additionally, Guyana’s economy has slowed down as a result of a sizable amount of external debt, problems in the sugar and bauxite industries, and poor pricing for the key goods produced in the nation.
However, since 1999, the Guyanese economy has made some progress toward recovery and now offers better conditions for trade and investment.
Conclusion
These economies in South America are among those that are growing at the quickest rates in the world. And although most of these nations have experienced progress, they still have high percentages of poverty and unemployment.
