Bolivia is the poorest nation in Latin America. More than 80% of the nation’s population lives in poverty, and 15% is considered extremely poor. The high poverty rate is attributed to the country’s reliance on small-scale agriculture. Low production methods and frequent water shortages significantly hamper economic growth in Bolivia. High unemployment and underemployment are also rampant in the Latin American country.
Venezuela is bombarded with extreme poverty, with three out of four people living below the poverty line. The main causes of poverty in Venezuela include political corruption, food shortages, and health care crises. High dependence on oil, economic mismanagement, and authoritarian leaders also result in high poverty rates in Venezuela. Political instability and high crime rates caused by dealing with illegal drugs make economic development nearly impossible.
The country Dominica is, without a doubt, one of the poorest countries in South America 2022, with a gross domestic product (GDP) of $469.9 million. Its economy primarily depends on agriculture, which is often affected by natural calamities, such as hurricanes. Its export industry is declining, and unemployment rates are very high. Moreover, health issues significantly affect the nation’s economy. More than 39% of the Dominica population lives below the poverty line.
Saint Vincent and the Grenadines is another poor nation in South America. The South Caribbean state has a GDP of $762.32 million, and its annual GDP growth rate is lower than 1%. The poverty rate in the nation is about 30.2%. Its high poverty rate is largely attributed to the fall of the banana industry, which resulted in unemployment and increased poverty. Corruption and political instability also contribute to the nation’s high poverty rate.
5. Saint Kits and Nevis
With a GDP of $909.85 million, Saint Kits and Nevis has one of the poorest economies in Latin America. One of the leading causes of high poverty rates in the country is unemployment and poor wages. The nation’s dependence on the agricultural sector, which is often affected by natural calamities, contributes to its high poverty rate.
Grenada is considered a poor nation. The country, which comprises the main island and smaller islands surrounding it, has about 2% of its population living in poverty. Also, 13% of the nation’s population is deemed extremely poor by the World Bank. Low education levels, low-skilled workers, and natural disasters that interfere with Grenada’s economic sectors are the leading causes of poverty in the Latin American state.
7. Saint Lucia
Saint Lucia is a poor Eastern Caribbean island country. It has a GDP of $1.40 billion and has one of the lowest GDP growth rates globally. St. Lucia’s economy largely depends on agriculture and tourism. About 25.1 percent of the island nation’s population lives below the poverty line. Its poor economy is attributed to a corrupt government and low political instability, which deter economic growth.