5 Least Developed Countries in Latin America

In this article, we take a look at the 5 least developed countries in Latin America. If you want to check out our detailed analysis of the Central and South American economic outlook, go directly to the 15 Least Developed Countries in Latin America.

5. El Salvador 

HDI Ranking: 5

GDP Per Capita Ranking: 5

Average Ranking: 5

El Salvador is located in Central America, and is one of the least developed countries in Latin America. The country suffers from corruption, economic mismanagement, violence, income inequality and lack of investment and poor infrastructure. 

The economy is also not diversified enough, with the country largely depending on services and remittances. Apart from that, 41% of the country’s economy is informal, accounting for $35 billion of GDP in PPP. 

Further, El Salvador is one of the worst countries in the world when it comes to wealth distribution, which, along with the aftermath of civil war, has contributed to the low economic growth, as seen in the country for the past 40 years.