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					2005 ICP Regional Summary: Latin America and Caribbean
Overview
Eleven countries from the Latin America and Caribbean (LAC) region participated in the
2005 ICP. All but one of the countries participated in the South America program
coordinated by Statistics Division of the United Nations Economic Commission for Latin
America and the Caribbean (ECLAC) and Statistics Canada. Mexico took part in the
Eurostat/OECD program.
All regional values shown below include only the countries that participated in the 2005
International Comparison Program.

Size of the economy
PPP-based GDP figures indicate that the LAC economies account for 8 percent of the
world economy as opposed to 5 percent based on GDP converted to US dollar using
market exchange rates. Brazil and Mexico are the largest economies in the region and
account for nearly two-thirds of LAC’s GDP and 61 percent of the population.

         Latin Am erica and Caribbean GDP shares

                                   Uruguay
                          Peru
                                      Argentina
           Paraguay
                                        Bolivia




      Mexico



                                             Brazil

         Ecuador

               Colombia
                           Chile




Living Standards
The region’s average GDP per capita is $9064 in PPP terms. Chile, Mexico, and
Argentina have the highest GDP per capita in the region and Paraguay and Bolivia the
lowest.
                                                GDP per capita

  14,000

  12,000

  10,000

   8,000

   6,000

   4,000

   2,000

     -
           Chile   Mex ico   Argentina Venezuela, Uruguay   Brazil   Ecuador   Peru   Colombia   Paraguay   Boliv ia
                                          RB




Economy                          GDP per capita, PPP ($)
Latin America and Caribbean                        9,064
Chile                                             12,277
Mexico                                            11,317
Argentina                                         11,076
Venezuela, RB                                      9,888
Uruguay                                            9,277
Brazil                                             8,606
Ecuador                                            6,541
Peru                                               6,474
Colombia                                           6,314
Paraguay                                           3,905
Bolivia                                            3,623

Actual Individual Consumption
Actual individual consumption is measured by the total value of household final
consumption expenditure, expenditures by non-profit institutions (such as NGOs and
charities) serving households, and government expenditure on individual consumption
goods and services (such as education or health). LAC’s actual individual consumption is
above the world average. Country values range from the nearly one and one-half times
the world average for Mexico to less than half the world average for Bolivia.
                     Actual Individual Consumption per capita (World=100%)

  400%



  300%



  200%



  100%



    0%
            East Asia    Europe and High-income    Latin    Middle-East                South Asia       Sub-
           and Pacific   Central Asia           America and and North                                  Saharan
                                                 Caribbean     Africa                                   Africa




                    Actual Individual Consumption per capita (World =100%)

  160.0%
  140.0%

  120.0%
  100.0%
   80.0%
   60.0%

   40.0%
   20.0%

    0.0%
            Chile   Mex ico   Argentina Venezuela, Uruguay   Brazil   Ecuador   Peru     Colombia   Paraguay   Boliv ia
                                           RB




PPP-based measures of collective government consumption
Collective government consumption expenditures consist of expenditures incurred by
general and local governments for collective consumption services such as defense,
justice, general administration, and the protection of the environment. Lower prices for
such services in developing countries tend to reduce the dispersion of collective
government consumption per capita across regions compared to that observed for per
capita GDPs. Country values range from nearly one and one-half times the world average
for Brazil to one-half or less of the world average for Paraguay, Peru, and Bolivia.
                     Collective Government Consumption per capita (World=100%)

  400%



  300%




  200%



  100%



    0%
            East Asia       Europe and High-income    Latin    Middle-East                South Asia      Sub-
           and Pacific      Central Asia           America and and North                                 Saharan
                                                    Caribbean     Africa                                  Africa




                    Collective Government Consumption per capita (World =100%)

  180.0%
  160.0%
  140.0%
  120.0%
  100.0%
   80.0%
   60.0%
   40.0%
   20.0%
    0.0%
            Chile      Mex ico   Argentina Venezuela, Uruguay   Brazil   Ecuador   Peru   Colombia Paraguay   Boliv ia
                                              RB




PPP-based measures of gross fixed capital formation
Gross fixed capital formation measures countries’ investment expenditures, which are
mostly comprised of purchases of equipment and construction services. Chile has the
highest gross fixed capital formation per capita of 125 percent of the world average.
Bolivia and Paraguay lag far behind with just over 15 and 25 percent of the world
average, respectively.
                                      GFCF per capita (World=100%)

  400%


  300%


  200%


  100%


    0%
            East Asia    Europe and High-income    Latin    Middle-East                South Asia      Sub-
           and Pacific   Central Asia           America and and North                                 Saharan
                                                 Caribbean     Africa                                  Africa



                    Gross Fixed Capital Formation per capita (World =100%)

  140.0%

  120.0%

  100.0%

   80.0%

   60.0%

   40.0%

   20.0%

    0.0%
            Chile   Mex ico   Argentina Venezuela, Uruguay   Brazil   Ecuador   Peru   Colombia Paraguay   Boliv ia
                                           RB




Price level indexes

A price level index (PLI) is the ratio of a PPP to the market exchange rate of the
numeraire currency. PLIs are used to compare price levels between countries. The PLI
indicates the relative price of GDP (or its components) in a country, as if it were
“purchased” after acquiring local currency at the prevailing exchange rate. PLIs are
generally low in poorest countries. This reflects the common experience of travelers who
find many (but not all) of the goods and services in the poorest countries relatively cheap
compared to similar products in their home country.
Price levels generally rise with GDP per capita. In Latin America and the Caribbean,
Mexico’s goods and services are the most expensive and Bolivia’s the least expensive.
Argentina has a similar value of GDP per capita as Mexico but less expensive goods and
services.
      GDP Price Level Indexes, World = 100

90%




                                             Mexico
80%




70%




60%


                                             Argentina

50%




40%


                 Bolivia

30%
                     GDP per capita

				
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