The Economic Commission for Latin America and the Caribbean (ECLAC) presents the final results of the International Comparison Program (ICP) for South America, with 2005 as the reference year. This program allows for a comparison of the economic performance, welfare levels, and price structures of the countries in the subregion using purchasing power parities (PPP).

According to the results, Chile, Argentina, and the Bolivarian Republic of Venezuela registered the highest levels of PPP-adjusted gross domestic product (GDP) per capita in 2005. Chile stood out with a real GDP per capita significantly higher than the regional average, followed by Argentina and Venezuela. In contrast, Bolivia and Paraguay presented the lowest levels of relative welfare among the countries analyzed.

Regarding price levels, the study indicates that in 2005 the countries where it was most expensive to live and work were Chile, Brazil, the Bolivarian Republic of Venezuela, and Uruguay, while Paraguay and Bolivia were among the economies with the lowest price levels. These differences explain the variations observed between GDP measurements in nominal and real terms.

Regarding household consumption, Argentina, Chile, and Uruguay led the region, with per capita levels above the South American average. Argentina stood out particularly in spending on food and non-alcoholic beverages and communications, while Chile led in spending on clothing, transportation, and housing.

In terms of gross fixed capital formation, Chile and Argentina showed the highest levels of per capita investment, especially in construction and machinery and equipment, reflecting greater dynamism in their economies. Conversely, Bolivia and Paraguay registered the lowest levels of real per capita investment.

Finally, in the government consumption expenditure component, Brazil positioned itself as the country with the highest per capita spending in the region, while Chile presented the highest prices for government services.

Taken together, the results of the PCI 2005 demonstrate the economic heterogeneity of South America and confirm the relevance of purchasing power parities as a fundamental tool for making more accurate and consistent international comparisons on the size of economies, levels of well-being and price structures.