15 Poorest Countries in South America and the Caribbean
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In this article, we will discuss the 15 poorest countries in South America and the Caribbean. If you want to skip our detailed analysis, you can go directly to 5 Poorest Countries in South America and the Caribbean.
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.