Overtakes Chile and Argentina: which is the largest economy in South America?

In 2024, the largest economies in the world, based on gross domestic product, are the United States, China, Japan, Germany and India. He GDP It is considered an essential measure to evaluate the size of a nation’s economy. To calculate the GDP of a country, the expenditure method is usually used, which consists of adding spending on new consumer goods, new investments, government spending and the net value of exports.

According to the International Monetary Fund (IMF), the United States, China and Germany are expected to remain the world’s largest economies this year. The organization projects a slowdown in the global economy for this year, with growth of 3%, compared to 3.5% in 2022. For 2024, the IMF estimates a global expansion of 2.9%. How did the countries turn out? south americans? One of the nations in the region is positioned in ninth place in the international ranking.

The largest economy in South America

According to the IMF, Brazil It is the country with the largest economy in South America. It surpasses Argentina, which is in 23rd place, while Chile and the rest of the South American nations are not in the top 40. Below, we show you the top 10 positions worldwide, according to their GDP.

Economic activity in Latin America and the Caribbean would have low growth

The Preliminary Balance of the Economies of Latin America and the Caribbean, published by the Economic Commission for Latin America and the Caribbean (ECLAC), projects a moderate growth scenario for the region, which implies a slowdown in job creation, as well as such as the continuation of labor informality and gender inequalities. The report, presented by José Manuel Salazar-Xirinachs, executive secretary of ECLAC, during a press conference, anticipates an increase in GDP regional of 1.9% by 2024, which marks a slowdown compared to the previous year.

The limited growth outlook is expected to persist with all subregions experiencing lower economic expansion than in 2023: 1.4% for South America, 2.7% for Central America and Mexico, and 2.6% for the Caribbean, not counting Guyana. This forecast reflects a trend toward slower economic growth and poses significant challenges for sustainable development and social equity in the region.

Projections indicate a moderation in economic growth and commercial activity worldwide, which has a direct impact on a restricted global economic stimulus. Despite a reduction in inflation, interest rates in advanced economies have remained stable, without experiencing significant declines. This has resulted in financing costs remaining high throughout the year and this trend is anticipated to continue in the near future.

This scenario highlights the challenge for Latin America and the Caribbean to navigate in a global environment characterized by limited economic growth and restrictive financial conditions. The persistence of high interest rates in major developed economies suggests that access to financing will continue to be costly, which could limit investments and, therefore, negatively impact economic growth in the region.