South America and Africa are two diverse continents with unique histories and economies. Both continents contain a mix of developing and developed nations, abundant natural resources, and a wide range in standards of living. When comparing the overall wealth and economic output of South America versus Africa, there are various factors to consider including GDP, GDP per capita, natural resources, poverty rates, and more.
Key Facts About South America’s Economy
- Total GDP of South America is about $5.2 trillion (World Bank 2020)
- GDP per capita ranges greatly across countries from $12,000 in Bolivia to over $45,000 in Chile (World Bank 2020)
- Main exports are minerals, metals, agricultural products, and energy resources
- Brazil has the largest economy in South America representing over half of the continent’s total GDP
- In recent decades South American countries have trended towards more market-oriented economic policies
- Approximately 20-30% of the population lives below the national poverty line, but poverty has been declining over the last 15 years
Key Facts About Africa’s Economy
- Total GDP of Africa is about $2.6 trillion (World Bank 2020)
- GDP per capita ranges greatly across countries from $300 in Burundi to over $70,000 in Seychelles (World Bank 2020)
- Main exports are crude oil, metals, agricultural products, and minerals
- Nigeria has the largest economy in Africa representing about 20% of the continent’s total GDP
- In recent decades African countries have trended towards more market-oriented reforms and economic liberalization
- Approximately 40% of the population lives below the national poverty line
Comparing Economic Output
Looking at total economic production, South America generates more output and wealth overall.
| Continent | Total GDP (2020) |
|---|---|
| South America | $5.2 trillion |
| Africa | $2.6 trillion |
South America’s total GDP is approximately double that of Africa. This difference is largely due to Brazil’s outsized economy, which alone is bigger than the entirety of Africa’s GDP. However, Africa also has significantly more countries and population than South America.
When looking at GDP per capita, South America still comes out ahead, but the gap is smaller.
| Continent | GDP Per Capita Range |
|---|---|
| South America | $12,000 – $45,000 |
| Africa | $300 – $70,000 |
The range reflects the vast economic differences between countries on each continent. South America’s poorest nations like Bolivia and Venezuela have a GDP per capita on par with some of Africa’s poorer countries. But South America’s wealthiest nations like Chile and Uruguay enjoy a higher standard of living than all but the richest African countries.
Industries and Exports
Both continents are rich in natural resources and rely heavily on exporting commodities. Here is a comparison of the major exports for each region:
South America’s Top Exports
- Crude petroleum and petroleum gases
- Coal, iron ore, copper
- Gold, silver, platinum, diamonds
- Soybeans, coffee, corn, wheat
- Beef, poultry, seafood
- Cars and other vehicles
Africa’s Top Exports
- Crude petroleum and petroleum gases
- Gold, diamonds, platinum, cobalt
- Cocoa beans, coffee, tea
- Flowers, fruits, nuts
- Cotton, tobacco, wine
- Mineral fuels including coal
South America relies more heavily on food exports like soybeans, corn, wheat, beef and seafood. Africa exports more non-food agricultural products like flowers, nuts, cotton and tobacco. Both continents are major energy and mineral exporters, particularly oil and gas, precious metals, and minerals like copper and iron ore.
Poverty Rates
Poverty remains high in many countries across both continents. However, Africa has a higher overall poverty rate according to World Bank data.
| Continent | Poverty Rate |
|---|---|
| South America | 20-30% below national poverty lines |
| Africa | 40% below national poverty lines |
This illustrates that while South America overall is wealthier in terms of economic output, a significant portion of the population remains poor and vulnerable in both regions. Even within the same country, vast economic inequalities persist between the wealthy elite and impoverished groups.
Economic Growth Trends
Historically, African countries have had slower economic growth and more instability than South America. However, since the early 2000s, Africa has begun to show higher growth rates that are closing the gap.
| Continent | Average Annual GDP Growth 2000-2020 |
|---|---|
| South America | 2.8% |
| Africa | 4.9% |
Higher commodity prices, more stable political conditions, and market reforms have supported Africa’s economic takeoff this century. Meanwhile, South America has experienced volatility due to oil price fluctuations and political turmoil in countries like Venezuela and Argentina.
Many economists predict Africa will continue outpacing South America in growth rates going forward. By 2050, African economies are projected to account for over half of the world’s population growth, one quarter of global consumption growth, and home to several of the world’s fastest growing economies.
Conclusion
Based on GDP totals and GDP per capita, South America currently remains the richer and more prosperous continent overall compared to Africa. However, Africa shows great promise with higher recent growth levels and abundant natural resources. With a young and rapidly urbanizing population, wise policy choices could enable Africa to unlock its full economic potential and close the gap with South America’s wealth over the coming decades.
There are also vast differences in wealth distribution within countries across both continents. Despite aggregate gains, large populations remain in poverty and vulnerable without access to economic opportunities. More equitable growth and inclusive institutions are needed to uplift the impoverished and bring greater prosperity to both South America and Africa going forward.