The economy of the South American continent represents the economy of the 12 nations and 3 territories of the continent housing a total population of about 410 million. Following independence, most South American countries followed the Import Substitution economic policy. From the 1930s until the 1980s, the policy was in effect. It was adopted with the goal of expanding domestic firms, which were not competitive and on par with foreign industries at the time. However, the program resulted in the continent’s debt problem, and the countries slipped farther behind Western countries in economic progress.

The actual expansion of the South American economies began in the 1990s, when the nations embraced the Free-Market economic system, which assisted them in overcoming the debt problem. Agriculture, mining, and forestry are currently the most important South American sectors. The following is a list of South America’s richest nations in terms of per capita income.

Richest Countries In South America

5. Peru – $7,002.09

4. Brazil – $8,967.66

Brazil, the largest country in South America in terms of both size and population, is also the continent’s fourth richest in terms of GDP (PPP). Brazil has a lengthy Atlantic Ocean coastline and is bordered by the majority of South American countries, with the exception of Chile and Ecuador.

Brazil’s economy might be characterized as inward-looking. The country’s economy suffered a significant setback in 2013, and it entered a recession the following year. It is now recuperating from the recession, but the country has largely recovered. The service sector accounts for 67.0% of GDP, while the industrial sector accounts for 27.5%. Agriculture contributes only 5.5% of the country’s GDP.

3. Argentina – $11,626.92

Argentina is the world’s eighth biggest country, with an area of 2,780,400 square kilometers. In terms of GDP per capita, it is the third richest country in South America. The country is located in the southern region of the continent, surrounded by Chile, Brazil, Bolivia, Paraguay, and Uruguay. To the east, it boasts a lengthy beachfront along the Atlantic Ocean. Argentina’s population is estimated to be approximately 43 million people.

Argentina’s economy is built on the country’s abundant natural resources, export-oriented agriculture, a well-educated population, and a diverse industrial sector. The country’s economic performance has seen various ups and downs during the last few decades. It is now classed as a moderate emerging economy.

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2. Chile – $16,078.71

In terms of GDP per capita, Chile is the richest economy in South America. Chile is located in southern South America, on a long and narrow strip of land between the Pacific Ocean and the Andes mountain range. Chile’s nearest neighbors are Peru, Bolivia, and Argentina. The nation has an area of around 756,096.3 square kilometers. It has a population of 16,341,929 as of 2012.

Chile is one of the continent’s most successful and stable economies, and the World Bank classifies it as a high-income nation. It ranks 30th in the world in terms of competitiveness. Mining, business and personal services, wholesale, retail commerce, and manufacturing are Chile’s biggest economic sectors by GDP. Only 4.9% of the GDP is contributed by the agricultural and allied sectors.

1. Uruguay – $17,164.89

In terms of GDP per capita, Uruguay is the richest country in South America. The nation is located in the southeastern corner of South America and has an area of around 176,000 square kilometers. The country has a population of 3.42 million people.

Uruguay has a stable economy with a literate workforce and an export-oriented agriculture industry that serves as the country’s economic foundations. Beef and wool are the country’s most powerful export-oriented sectors. Mining operations are also carried out. Plastics are the country’s most important manufacturing export. The telecoms industry is also advanced. Tourism and travel account for 9.4% of the country’s GDP.