The economies of the continent’s 12 nations and three territories, with a combined population of about 410 million people, make up the South American economy. After winning independence, most South American countries adopted the Import Substitution economic policy. The policy was in place from the 1930s to the 1980s. It was created with the intention of growing indigenous businesses that were not yet competitive and on par with foreign industry. The scheme, however, caused a debt crisis on the continent, and the continent’s economy fell behind those of the West.
The genuine expansion of the economies of South America began in the 1990s, when the countries adopted the free-market economic system, which assisted them in overcoming debt.
5. Peru – $7,002.09
In terms of per capita GDP, Peru is the fifth richest country in South America. Mining, manufacturing, fishing, and tourism are among the country’s most important industries. Peru’s economy is consistently regarded as one of the world’s fastest-growing, and its HDI (Human Development Index) is also rising. Peru’s service sector, which typically accounts for the majority of the economy in the world’s wealthiest countries, is expanding and already accounts for slightly under half of the country’s GDP.
4. Brazil – $8,967.66
Brazil, the continent’s largest country in terms of both size and population, is also the continent’s fourth richest in terms of GDP (PPP). With the exception of Chile and Ecuador, Brazil has a long Atlantic Ocean coastline and is bordered by the majority of South American countries.
Brazil’s economy is classified as an inward-oriented economy. In 2013, the country’s economy took a serious hit and entered a recession the following year. Though it is still recuperating from the recession, the country has largely re-emerged. The service sector accounts for 67.0 percent of GDP, while the industrial sector is responsible for 27.5 percent. Agriculture accounts for only 5.5 percent of the country’s gross domestic product