Latin America and the Caribbean represents 7.3% of global GDP

He International Comparison Program (PCI), in which the Economic Commission for Latin America and the Caribbean (ECLAC) participates, today published the new Purchasing Power Parities (PPP) corresponding to the 2021 cycle.

According to the results, Latin America and the Caribbean represents 7.3% of the global Gross Domestic Product (GDP) and 8% of the world population. This report is based on data collected during the 2021 cycle, in collaboration with ECLAC.

The results show that the size of the world economy was almost 152.4 trillion dollars measured in PPP terms. More than half of the world’s total production came from low- and middle-income economies.

The largest economy in the world in 2021 was China, with a GDP measured in PPP of $28.8 trillion, representing 18.9% of global GDP. The United States came in second place, with almost $23.6 trillion (15.5% of global GDP), while India came in third, with $11.0 trillion, which accounted for 7.2%. . These three economies represented 41% of the world’s population and 42% of the world’s GDP based on PPP.

In Latin America and the Caribbean, Brazil, with 3.7 trillion dollars, and Mexico, with 2.7 trillion, were the two largest economies in the region. Together, they contributed 57% of regional GDP, which, in turn, contributed 7.3% of global GDP.

The ICP is one of the most important statistical initiatives at the global level, coordinated by the World Bank under the auspices of the United Nations Statistical Commission. The 2021 ICP cycle is the tenth comparison carried out since the launch of the initiative, more than 50 years ago, and provides information on 176 participating economies, including 39 countries in Latin America and the Caribbean.

ECLAC has coordinated the implementation of the Program in the region since 2011, although its participation dates back to 2005.

According to these results, globally, the average real GDP per capita for all participating countries was approximately $20,271 in 2021. The highest level was found in North America (over $69,423), while the highest lowest was recorded in Sub-Saharan Africa (a little more than $4,430). About three-quarters of the global population live in economies with per capita spending below the world average.

For the Latin American and Caribbean region, GDP per capita averaged $18,560, below the global average of $20,271, and with wide heterogeneity between countries.

The report adds that average material well-being, calculated by Individual Effective Consumption (AIC) per capita, was $13,842 for the region, slightly above the world average of $12,948.

In addition, detailed information is presented on other components of spending, such as investment. In per capita terms, high-income economies spent 2.6 times the world average on investment, while upper-middle-income economies were slightly above the world average. Lower-middle-income economies spent about a third, and low-income economies less than a tenth, of the global average per capita investment spending.

The complete set of data referring to GDP and its main components (household and government consumption expenditures, gross fixed capital formation and domestic absorption) can be found in the website of the World Bank dedicated to PCI results.

During the second half of 2024, ECLAC will publish a detailed analysis with the results of this cycle for the Latin American and Caribbean region, which will include a description of the methodologies used.