Economy of South America
The economy of South America comprises about 500 million people living in 14 states and territories.
| Population: | 364.24 million |
| GDP (PPP): | $ 2.65 trillion |
| GDP (Currency): | $0.97 trillion |
| GDP/capita (PPP): | $7,264 |
| GDP/capita (Currency): | $2,663 |
| Annual growth of per capita GDP: | ↓ 0.29% (2002) |
| Income of top 10%: | 44.37% |
| Millionaires : | 0.3 million (0.08%) |
| Unemployment | 10.76% (2002) |
As of early 2007, South America is experiencing great economic development, with Venezuela, Argentina, Uruguay and Peru 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.
Economy
| Country | GDP (nominal) of 2006 | GDP (PPP) of 2005 | GDP (PPP) per capita of 2005 | HDI of 2004 |
|---|---|---|---|---|
| Argentina | 212,702 | 558,860 | 14,838 | ↓ 0.863 |
| Bolivia | 10,828 | 26,087 | 2,945 | ↑ 0.692 |
| Brazil | 1,067,706 | 1,594,482 | 9,108 | – 0.792 |
| Chile | 145,205 | 196,401 | 13,254 | ↓ 0.859 |
| Colombia | 135,075 | 350,797 | 7,630 | ↑ 0.790 |
| Ecuador | 40,447 | 60,173 | 4,475 | ↑ 0.765 |
| Guyana | 0,870 | 3,456 | 4,799 | ↑ 0.725 |
| Paraguay | 8,773 | 29,297 | 4,799 | ↑ 0.757 |
| Peru | 93,268 | 170,089 | 6,173 | ↑ 0.767 |
| Suriname | 2,112 | 3,018 | 5,883 | ↑ 0.759 |
| Uruguay | 19,221 | 34,620 | 10,103 | ↑ 0.851 |
| Venezuela | 181,608 | 174,604 | 5,777 | ↑ 0.784 |
Currency
Below is a list of the currencies of South America.
| Country | Currency | Central Bank |
|---|---|---|
| Argentina | Argentine peso (ARS) | Banco Central de la República Argentina |
| Bolivia | Bolivian boliviano (BOB) | Banco Central de Bolivia |
| Brazil | Brazilian real (BRL) | Banco Central do Brasil |
| Chile | Chilean peso (CLP) | Banco Central de Chile |
| Colombia | Colombian peso (COP) | Banco de la República |
| Ecuador | U.S. dollar (USD) | Federal Reserve |
| French Guiana | Euro (EUR) | European Central Bank |
| Guyana | Guyanese dollar (GYD) | Bank of Guyana |
| Paraguay | Paraguayan guaraní (PYG) | Banco Central del Paraguay |
| Peru | Peruvian nuevo sol (PEN) | Banco Central de Reserva del Perú |
| Suriname | Surinamese dollar (SRD) | Centrale Bank van Suriname |
| Uruguay | Uruguayan peso (UYU) | Banco Central del Uruguay |
| Venezuela | Venezuelan bolívar (VEB) | Banco Central de Venezuela |
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%.