In this article, we discuss 15 richest countries in Central and South America. If you want to see more countries in this selection, check out 5 Richest Countries in Central and South America.
According to the IMF, Latin America’s economies managed to withstand the shocks of Russia’s invasion of Ukraine and global interest rate increases last year. The region’s economy grew by almost 4% in 2022, employment made a strong recovery, and the service sector bounced back from pandemic-related setbacks.
However, amidst rising uncertainties abroad and limitations at home, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) predicts that the deceleration of economic expansion in Latin America and the Caribbean will worsen in 2023, with a projected rate of 1.2%. ECLAC has stated that, once again in 2023, countries in the region will face limited options in terms of fiscal and monetary policies. Inflation in the region is declining, and while interest rates are expected to stop rising in some countries, the impact of this policy on private consumption and investment will be more strongly felt this year due to monetary policy’s lag time. Additionally, the recent global financial volatility, inflation remaining high in comparison to pre-pandemic levels, and high public debt levels make a monetary easing cycle unlikely.
Regarding fiscal matters, authorities have little room to maneuver as long as public debt remains high. ECLAC suggests that measures are necessary to increase fiscal space and strengthen fiscal sustainability by enhancing the revenue-raising and redistributive capacity of taxation policies. ECLAC has predicted that in 2023, every subregion will see a decline in growth compared to 2022. South America’s growth rate is estimated to be 0.6%, which is lower than the 3.8% growth in 2022. Central America and Mexico are expected to grow by 2.0%, a reduction from the 3.5% growth seen in 2022. The Caribbean (excluding Guyana) is predicted to grow by 3.5%, compared to the 5.8% growth seen in 2022. The decline in commodity prices and the limited capacity of domestic policy to stimulate activity will impact South America. The region’s high inflation has reduced real income, affecting private consumption and investment.
As per the Economic Intelligence Unit (EIU), the decoupling of the US and China will be a significant trend underlying geopolitics and geoeconomics for years to come, with other countries being forced to choose sides in an increasingly divided global economy. This trend is already affecting Latin America and will continue to do so in 2023. A crucial question is which side Latin American countries will choose. While the region’s governments consider both the US and China to be important partners, they are unlikely to choose between them. However, if forced to take sides on strategic issues like technology development, the EIU predicts that the US will prevail. Despite China’s status as the primary trade partner in some South American commodity-producing countries, Latin America maintains strong diplomatic ties with the United States.
The Economic Intelligence Unit (EIU) forecasts that China will continue to expand its presence in Latin America in 2023, particularly in areas such as lithium mining and in countries where authoritarianism is on the rise and their relationships with the US are deteriorating. The presidency of Luiz Inácio Lula da Silva in Brazil is also an area of interest, as he increased engagement with China during his previous tenure, but is expected to try to maintain a balance between the US and China this time around. The bifurcation of the global economy provides an opportunity for Latin American countries in terms of nearshoring, which may bring more investment to the region in 2023. However, many countries in the region face various disadvantages, such as weak infrastructure, low levels of skills and technological readiness, and concerns about political predictability, stability, and security. According to EIU’s business environment rankings, Mexico, Costa Rica, Chile, and Brazil are best positioned to compete and benefit from nearshoring trends compared to other major Asian economies.
This article focuses on discussing the wealthiest countries in Central and South America. These countries also boast some of the prominent companies operating in the region, such as MercadoLibre, Inc. (NASDAQ:MELI), Vale S.A. (NYSE:VALE), and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR).
Our Methodology
To determine the wealthiest countries in the world, we analyzed data from Credit Suisse’s Global Wealth Databook 2022. This database calculates wealth (as of 2021) based on the value of financial and non-financial assets while subtracting debt. We selected the 15 richest countries in Central and South America based on total wealth, ranking the list in ascending order of wealth.
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Richest Countries in Central and South America
15. Guyana
Total Wealth in 2021: $7 billion
Guyana, also known as the Co-operative Republic of Guyana, is a nation situated in the northern part of South America. Its name originates from an indigenous term that signifies “Land of Many Waters.” According to CEPAL, the year 2020 witnessed a significant growth spurt in Guyana’s economy due to the emergence of the oil industry, which began operating in December 2019. Despite the negative effects of the COVID-19 pandemic, the thriving oil sector helped the economy grow by 43.5%.
As Guyana’s economy continues to expand, there will be opportunities for new businesses to emerge, possibly achieving the same level of success as established companies like MercadoLibre, Inc. (NASDAQ:MELI), Vale S.A. (NYSE:VALE), and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR).
14. Paraguay
Total Wealth in 2021: $55 billion
Paraguay, which is officially known as the Republic of Paraguay, is a nation located in South America. Paraguay is still in the process of developing, and it has played a significant role in various international organizations such as Mercosur, the United Nations, the Organization of American States, the Non-Aligned Movement, and the Lima Group since it was one of their founding members. On April 25, 2023, the Board of the World Bank Group gave its approval for a financial assistance package of $125.3 million to fund the “Weaving Supports for Educational Excellence” initiative in Paraguay. The project’s primary goal is to enhance the learning environment in the country and reinforce the institutional structures that promote education quality. With total wealth of $55 billion in 2021, Paraguay is one of the richest countries in Central and South America.
13. Nicaragua
Total Wealth in 2021: $57 billion
Nicaragua, which is officially known as the Republic of Nicaragua, holds the title of the most extensive country in Central America. The fusion of different cultural traditions has resulted in a significant diversity in areas such as folklore, cuisine, music, and literature. Nicaragua played a pivotal role in the formation of the United Nations and is also an active member of several other international organizations, such as the Non-Aligned Movement, the Organization of American States, the Bolivarian Alliance for the Peoples of Our America, and the Community of Latin American and Caribbean States. In 2021, Nicaragua’s total wealth stood at $57 billion, making it one of the richest countries in Central and South America.
12. Bolivia
Total Wealth in 2021: $102 billion
Bolivia, which is officially known as the Plurinational State of Bolivia, is a nation located in the central-western part of South America. The city of Santa Cruz de la Sierra is Bolivia’s largest city and the primary center of industry. Bolivia is classified as a developing country and has been a member of several international organizations such as the UN, IMF, NAM, OAS, ACTO, Bank of the South, ALBA, and USAN. Bolivia’s main economic activities consist of agriculture, forestry, fishing, mining, and manufacturing products such as textiles, clothing, refined metals, and refined petroleum. Bolivia’s land is abundant in minerals such as tin, silver, lithium, and copper. It is one of the richest countries in Central and South America, with total wealth in 2021 amounting to $102 billion.
11. Panama
Total Wealth in 2021: $145 billion
Panama, which is officially known as the Republic of Panama, is a nation that spans across the southern portion of North America and the northern part of South America. The largest city and capital of Panama is Panama City. The country has played a crucial role in the establishment of many international organizations such as the United Nations, OAS, LAIA, G77, WHO, and NAM. Despite having a growing tourism industry, banking, and commerce sectors, the revenue generated from canal tolls remains a significant contributor to Panama’s GDP. In 2021, the country’s total wealth came in at $145 billion.
10. Uruguay
Total Wealth in 2021: $147 billion
Uruguay, also known as the Oriental Republic of Uruguay or the Eastern Republic of Uruguay, is a nation situated in South America. It operates under a democratic constitutional republic, with a president who fulfills both the roles of head of state and head of government. Uruguay is considered one of the leading countries in the region in terms of economic freedom, income equality, per-capita income, and Foreign Direct Investment (FDI) inflows. In 2021, the total wealth of Uruguay stood at $147 billion, making it one of the richest countries in Central and South America.
9. El Salvador
Total Wealth in 2021: $164 billion
El Salvador, which is officially known as the Republic of El Salvador, is a nation located in Central America. The largest city and capital of El Salvador is San Salvador. The country’s economy has traditionally been centered around agriculture, with coffee being a primary crop. El Salvador has the smallest land area and the highest population density in Central America. In 2021, the country’s wealth came in at $164 billion, making it one of the richest countries in Central and South America.
8. Costa Rica
Total Wealth in 2021: $171 billion
Costa Rica, which is officially known as the Republic of Costa Rica, is a nation located in North America’s Central American region. It shares borders with Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest. According to the United Nations Development Programme (UNDP), Costa Rica has achieved higher levels of human development compared to other nations with similar income levels, with a superior record on human development and inequality compared to the region’s median.
7. Ecuador
Total Wealth in 2021: $238 billion
Ecuador, also known as the Republic of Ecuador, is a country situated in the northwest region of South America. The largest city and capital of Ecuador is Quito. It is a developing nation whose economy heavily relies on the exportation of commodities such as petroleum and agricultural products. Ecuador is a founding member of multiple international organizations such as the United Nations, Organization of American States, Mercosur, PROSUR, and the Non-Aligned Movement.
6. Argentina
Total Wealth in 2021: $326 billion
Argentina, officially known as the Argentine Republic, is a nation located in the southern part of South America. Argentina is considered a regional powerhouse and has maintained its historical position as a middle power in global affairs. The United States recognizes it as a key non-NATO ally. Although still a developing country, Argentina is a founding member of the United Nations, World Bank, World Trade Organization, Mercosur, Community of Latin American and Caribbean States, and the Organization of Ibero-American States. It is one of the richest countries in the world, with total wealth of $326 billion as of 2021.
Argentina is home to some of the best companies in Central and South America, like MercadoLibre, Inc. (NASDAQ:MELI), Vale S.A. (NYSE:VALE), and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR).
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Disclosure: None. 15 Richest Countries in Central and South America is originally published on Insider Monkey.
