The South American country with the cheapest cost of living in the region, according to the rankings. Photo LR Composite / iStock / Bloomberg
Factors like Inflation and Gross Domestic Product (GDP) per capita can be determined Cost of living, which is the amount of money a person spends to survive over a period of time. In that sense, There are areas where living comfortably is cheaper than others. As seen in this note, Most economical country in South America.
And Ranking by Statisa Research DepartmentA statistics and market research portal created a list of the cost of living in Latin American countries. Uruguay was established as the most expensive state.
The country with the lowest cost of living in South America
Paraguay is currently the cheapest country to cover basic costs Excluding house rent. Citizens of the country need only 466 dollars per month, approximately 1,773 soles.
The nation is One of the most competitive open economies in the region, Because it has the lowest percentage of the three most important taxes (sales tax, personal income and business income). One of the lowest import duty rates, And not just from South America of Latin America.
He Leonardo Trevisan is an economist and expert in geopolitics pointed to Bloomberg, an American financial information firm Economy of Uruguay positioned together with The highest cost of living in the region, Because, unlike Paraguay, it has one A relatively closed marketLike most Latin American countries, and Aimed at agricultural sector rather than industrial development.
The Brazilian expert considered such features Higher tax rates on various goods, To protect national institutions, They found it expensive to live in Uruguay.
What determines the cost of living?
For his part, Professor Federico de Cristo of the Faculty of Business Sciences of the Austral University in Argentina notes that differences in the cost of living in South American countries can be attributed to the size of the countries’ GDP per capita. Countries with higher cost of living have higher GDP.
The educator pointed out Paraguay has the lowest public spending in the region, through limited investment in social security, health and education spending. Other countries with larger public finances set higher taxes to balance the accounts.
Asuncion, Paraguay. Photo: Pxfuel
And what state is Peru in?
Paraguay is followed by its neighbors Argentina, with a cost of living of US$469, and Bolivia (US$481). Peru ranks fourth, with a budget of US$495 per month to live comfortably.
The list is rounded out by Colombia (US$527), Ecuador ($541), Brazil (US$553), Venezuela (US$601), Chile (US$703) and Uruguay (US$887).
Impact of Inflation on Cost of Living
He The cost of living has undoubtedly increased due to inflation This is exacerbated by pandemics and global events such as the war in Ukraine. The Economic Commission for Latin America and the Caribbean (ECLAC) pointed out at the time that these factors mainly made energy resources and fertilizers more expensive. contributed to the rise in food prices on the continent.
According to the latest estimates International Monetary Fund (IMF), inflation in Latin America and the Caribbean will be 16.7% in 2024, an increase of 2 figures compared to the previous year. However, the The company predicts that this will drop to 7.7% by 2025 3.6% already In 2029.
What language is spoken in Paraguay?
Paraguay is characterized by its bilingualism. Guaraní, the dominant native language, coexisted with Spanish for centuries, leading to a rich poetic production, both oral and written. This tradition is reflected in musical and literary compositions that are universally acclaimed.
