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Despite Being the Largest Economy in the Southern Hemisphere, Brazil Has Only the 9th Per Capita GDP in Latin America. According to a Survey by Voronoi/Visual Capitalist, the Country Registers an Average of US$ 10.3 Thousand Per Year Per Inhabitant, Lagging Behind Several Neighboring Nations.
Meanwhile, Guyana has skyrocketed in the rankings, reaching a per capita GDP of US$ 28.9 thousand, nearly three times higher than Brazil’s. The growth of the Guyanese economy is directly linked to the exploitation of oil on the equatorial margin, a resource that Brazil has yet to tap into.
The per capita GDP is an indicator that measures a country’s wealth by dividing the Gross Domestic Product (GDP) by the number of inhabitants. It reflects the level of prosperity of the population and allows for comparisons between different countries.
Although Brazil has a high total GDP, its large population reduces the per capita value, leaving the country behind smaller economies that are more efficient in generating wealth per inhabitant.
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Guyana Soars in the Ranking Due to Oil Wealth
Guyana has become the leader in per capita GDP in Latin America thanks to the exploitation of oil reserves on the equatorial margin. The country has seen rapid economic growth after ExxonMobil, the American giant in the sector, began operations in the territory.
Since 2015, when the reserves were discovered, Guyana has multiplied its oil production, boosting revenue and the country’s development. This economic growth has allowed the country to surpass traditional economies in the region, establishing itself as one of the richest in proportional terms.
Brazil Falls Behind in the Latin America Ranking
Even being one of the richest countries in Latin America in absolute terms, Brazil ranks only 9th in per capita GDP. The country registers US$ 10.3 thousand per year per inhabitant, well below economies like Chile, Uruguay, and Panama.
This difference occurs because, despite its natural wealth and the size of the Brazilian economy, income distribution and structural challenges limit the proportional growth of the population. The lack of investments in strategic sectors, such as the exploration of oil on the equatorial margin, directly impacts economic performance.
Oil Exploration in Brazil and Environmental Barriers
Unlike Guyana, Brazil faces environmental barriers to exploring the equatorial margin, which extends from Amapá to Rio Grande do Norte, passing through Pará, Maranhão, Piauí, and Ceará.
Ibama, under the command of Minister Marina Silva, has made it difficult even to conduct studies by Petrobras to assess the feasibility of exploration. The restriction prevents Brazil from taking advantage of the same reserves that transformed Guyana, limiting the growth of the national per capita GDP.
With Guyana reaping the benefits of its oil strategy, it remains to be seen whether Brazil will follow a similar path in the future or continue leaving this wealth untapped.
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