Publish in Special Reports - Wednesday, December 2, 2020
Mexico is becoming poorer and poorer compared with its Latin American neighbors. Here capital Mexico City. (Photo: City of Mexico City Government)
Mexico becoming poorer as Panama remains region’s richest.
BY LATINVEX STAFF
Venezuela – which ranked as Latin America’s second-richest country in 1998 – is set to become the region’s poorest next year, according to a Latinvex analysis of new data and projections from the International Monetary Fund (IMF).
The data looks at gross domestic product based on purchasing-power-parity (PPP) per capita GDP to measure wealth.
As late as two years ago, the IMF had projected Venezuela would end up among the three poorest countries in 2023. Now its forecasts show it will be even poorer than Nicaragua and Honduras, starting in 2021.
This year, Venezuela’s GDP per capita of $5,259 was barely higher than that of Honduras, which was also just higher than Nicaragua.
Mexico, Latin America’s second-largest economy, will also suffer a worrying decline – going from the 5th-richest last year to 6th place this year and seventh place next year.
Meanwhile, Panama remains the richest country in Latin America, with a GDP per capita of $28,414.
While Chile follows in second place, Uruguay has replaced Argentina as the third-richest country. It will likely remain so next year as well.
Latin America GDP PPP 2019 Ranking