North vs. South America – Key Differences in Population, Culture, and Economy

The Americas are home to over 1 billion people, spread across 23 countries in North America and 12 in South America. But how similar are they?

At first, the contrasts are striking. North America is wealthier and dominated by advanced economies like the United States and Canada, while South America relies heavily on natural resources and agriculture.

North America speaks mostly English and French, while South America is shaped by Spanish and Portuguese.

In terms of population, North America has around 579 million people, but a significant portion of its land remains uninhabited-especially in Canada as noted by Brainly.

South America, with 437 million people, is more densely populated in urban areas, yet its rural traditions remain strong as per Worldometar. Economically, the divide is even sharper.

North America contributes to over 25% of the world’s GDP, thanks to its technological and financial industries. South America, though rich in resources, faces economic instability and lower incomes according to Visual Capitalist.

Key Takeaways

  • North America is wealthier and more industrialized, contributing over 25% of the world’s GDP, while South America relies heavily on natural resources and agriculture.
  • The U.S. and Canada have higher GDP per capita ($67,000) compared to South America ($10,010), reflecting vast economic disparities.
  • Urbanization rates are high across both continents, but North America has better infrastructure, while South America faces issues like informal settlements and resource shortages.
  • Trade agreements like USMCA (~$26 trillion GDP) boost North American trade, while MERCOSUR (~$2.9 trillion GDP) focuses on intra-South American economic cooperation.
  • Income inequality is significantly higher in South America, where the top 10% earn 12 times more than the poorest 10%, compared to 8 times in North America.
  • South America struggles with economic instability and deforestation, while North America faces challenges like wealth disparity and an aging population.

Did you know: Some of the most dangerous cities in the world are in America. See our list on top 9 most dangerous ones as of this year!

Population: Who Lives Where and How They Differ

A high-resolution satellite image of North and South America, displaying landforms, oceans, and geographic features
South America is home to the Amazon Rainforest, which produces 20% of the world’s oxygen and is the largest tropical rainforest on Earth

Population size, distribution, and demographics tell a compelling story about each region. North America and South America both boast large populations, but their numbers, density, and urbanization levels vary widely.

Total Population Comparison

Continent Estimated Population (2024) Largest Country by Population Population Density (People per sq. km)
North America ~579 million United States (~331 million) 22.9
South America ~437 million Brazil (~213 million) 24.1

North America: A Mix of High-Density Cities and Vast Open Spaces

  • United States: Largest population in North America, highly urbanized, with around 82% living in cities according to a Homework study.
  • Canada: Despite its vast size, it has a relatively small population (~38 million) concentrated near the U.S. border.
  • Mexico: Rapid urban growth, with over 80% of people living in cities, particularly in Mexico City (22 million people).

South America: Rapid Urbanization Meets Deep Rural Traditions

  • Brazil: The most populous country, home to São Paulo (22 million) and Rio de Janeiro (13 million).
  • Argentina: 92% of the population lives in cities, Buenos Aires being the largest.
  • Colombia: Nearly 80% urbanized, but rural regions still face economic hardship.

Urbanization Rate Comparison

Country Urbanization Rate (%)
United States 82%
Canada 81%
Mexico 80%
Brazil 87%
Argentina 92%
Colombia 79%

North America: Developed Urban Centers

A digitally enhanced satellite image of the Americas at night, with illuminated cities highlighting urban development
Over 80% of North America’s population lives in urban areas, while in South America, urbanization has surged to nearly 85%, making it one of the most urbanized continents in the world

United States (82%) – Major metro areas like New York (19M) and Los Angeles (13M) drive economic growth according to a World Bank report.

Canada (81%) – The population is concentrated in cities like Toronto, Vancouver, and Montreal, leaving vast rural areas sparsely populated.

Mexico (80%) – Rapid urban expansion, with Mexico City (22M) being one of the largest metropolitan areas globally.

South America: Rapid Urbanization & Infrastructure Gaps

A panoramic view of Santiago, Chile, featuring a dense cityscape with high-rise buildings and the snow-capped Andes Mountains in the background
Santiago, the capital of Chile, is one of the most developed cities in South America and sits in a valley surrounded by the Andes and the Chilean Coastal Range

Brazil (87%) – Cities like São Paulo (22M) and Rio de Janeiro (13M) dominate, but favelas highlight inequality.

Argentina (92%) – One of the most urbanized in Latin America, with Buenos Aires (15M) as the economic hub.

Colombia (79%) – Urban areas like Bogotá (8M) and Medellín are growing, but rural-urban divides remain.

Key Differences

  • North America has better infrastructure and planning, while South America faces overcrowding, informal settlements, and resource shortages.
  • South America’s urbanization is accelerating, but income inequality and public services remain challenges.

Culture: Language, Traditions, and Identity

Culture sets the two continents apart in fascinating ways. History, colonial influence, and indigenous heritage shape each region’s identity.

A colorful watercolor-style map of the Americas, featuring flowers, birds, and abstract splashes representing cultural and natural diversity
North America is home to three major languages—English, Spanish, and French—while South America primarily speaks Spanish and Portuguese, reflecting the continent’s colonial history

Language Diversity

Continent Main Languages Indigenous Language Influence
North America English, Spanish, French Strong in Canada, Mexico, and the U.S.
South America Spanish, Portuguese, Indigenous languages Widespread, especially in Peru and Bolivia

North America is dominated by English, though Spanish is rapidly growing in the U.S. South America, on the other hand, has Spanish as the primary language, except for Brazil, where Portuguese is spoken according to the New York Times.

Notable Cultural Differences:

  • Food: North America leans towards fast food and global cuisine, while South America is famous for its traditional dishes like asado (Argentina), feijoada (Brazil), and ceviche (Peru).
  • Festivals: The U.S. has Thanksgiving, Canada celebrates Canada Day, while South America lights up with Carnival (Brazil) and Inti Raymi (Peru).
  • Sports: Soccer dominates in South America, while North America favors American football, basketball, and baseball.

Historical Influences on Development

The divergent colonial histories of North and South America have profoundly shaped their modern trajectories.

North America

Primarily colonized by England and France, leading to the establishment of institutions that emphasized individual rights and democratic governance.

While indigenous societies like the Iroquois Confederacy had complex political systems, European colonization led to significant displacement and cultural assimilation according to Fiveable.

The early economy was bolstered by small-scale farming, trade, and later, industrialization, setting the stage for rapid economic growth.

South America

Lumen Learning notes that language is dominated by Spanish and Portuguese colonization, which established extractive economies focused on resource extraction and plantation agriculture.

Home to advanced civilizations like the Inca Empire, which were decimated by European conquest and diseases.

Colonial rule entrenched rigid social hierarchies, with power concentrated among European elites, leading to persistent social stratification.

Economic Strength and Differences

The economies of North and South America reveal some of the starkest contrasts between the two regions.

GDP Comparison

Continent Total GDP (2023) Largest Economy GDP per Capita
North America ~$27 trillion United States (~$21 trillion) ~$65,000
South America ~$4.3 trillion Brazil (~$2.05 trillion) ~$9,600

The economic landscapes of North and South America show stark contrasts, with North America significantly outperforming South America in terms of total GDP and GDP per capita.

According to data from the World Bank, North America’s total GDP in 2023 was estimated at $29.87 trillion, with the United States contributing approximately $26.85 trillion, making it the largest economy on the continent.

This economic dominance is reflected in GDP per capita, which stands at around $67,000, indicating a high standard of living and strong economic productivity. South America, by comparison, operates on a much smaller economic scale.

The IMF estimates that the region’s total GDP in 2023 was approximately $4.38 trillion, which is significantly lower than North America’s total output.

Brazil remains the economic powerhouse of the continent, contributing about $2.05 trillion to South America’s total GDP Despite this, GDP per capita remains considerably lower than that of North America, with an average of $10,010, highlighting lower income levels and economic disparity within the region.

The vast difference in economic productivity between the two continents stems from several factors, including industrialization levels, technological advancement, and economic policies.

North America’s economy is driven by a strong service sector, technological innovation, and a well-developed financial industry.

In contrast, South America’s economy relies heavily on natural resources, agriculture, and commodity exports, making it more vulnerable to global price fluctuations and economic instability according to CEPAL.

The disparity in GDP per capita also reflects broader income inequality, with North Americans generally enjoying higher wages, better infrastructure, and greater economic opportunities compared to many South American countries.

Key Economic Sectors

North America:

  • Dominated by finance, technology, and manufacturing.
  • The U.S. is home to Silicon Valley, the world’s leading tech hub.
  • Canada benefits from natural resources, particularly oil and minerals.

South America:

  • Strong in agriculture, mining, and energy.
  • Brazil is the world’s leading producer of coffee and soybeans.
  • Chile supplies over 28% of the world’s copper.

Major Trade Agreements:

Trade Agreement Countries Involved GDP Covered
USMCA (United States-Mexico-Canada Agreement) U.S., Canada, Mexico ~$26 trillion
MERCOSUR (Southern Common Market) Brazil, Argentina, Paraguay, Uruguay ~$2.9 trillion

USMCA, which replaced the North American Free Trade Agreement (NAFTA), includes the United States, Canada, and Mexico.

Collectively, these nations account for approximately 17% of global GDP as noted by weforum.org In 2022, trade in goods and services among USMCA countries totaled an estimated $1.8 trillion, with U.S. exports at $789.7 billion and imports at $974.3 billion according to ustr.gov.

CFR notes that MERCOSUR comprises Brazil, Argentina, Paraguay, and Uruguay. As of 2023, the combined GDP of these founding members was nearly $3 trillion, positioning MERCOSUR as one of the world’s largest economic blocs. The bloc aims to promote free trade and fluid movement of goods, people, and currency among member states.

While North America, under USMCA, thrives on high-tech industries and financial markets, South America’s MERCOSUR focuses more on the trade of raw materials and agricultural products.

Income Inequality

Miniature figurines of businessmen standing on stacks of coins at different heights, illustrating economic disparity
The richest 1% of the global population holds nearly 50% of the world’s wealth, highlighting the vast gap in economic distribution.

Income inequality is a critical issue in both regions, though more pronounced in South America.

In countries like the United States and Canada, the top 10% of earners hold a substantial portion of the wealth.

However, social safety nets and progressive taxation systems help mitigate extreme disparities according to iadb.org.

The region is considered the world’s most unequal.

The top 10% of earners make, on average, 12 times more than the poorest 10%.

In countries such as Colombia, Chile, and Uruguay, around 1% of the population controls between 37% and 40% of total wealth.

Poverty Rates

Poverty rates also differ markedly between the two regions.

  • North America: Reuters notes that poverty rates are relatively lower, supported by comprehensive welfare programs. For instance, in 2023, the United States reported a poverty rate of 11.1%.
  • South America: Approximately 27.3% of the population lived in poverty in 2023, with significant variations across countries. Extreme poverty affected 10.6% of the population according to cepal.org
Metric North America (United States) South America (Regional Average)
Top 10% vs. Bottom 10% Income Ratio 8:1 12:1
Poverty Rate 11.1% 27.3%
Extreme Poverty Rate 4.5% 10.6%

Challenges and Opportunities for Growth

A panoramic view of Medellín, Colombia, at sunset, showing high-rise buildings, green hills, and the Andes Mountains in the background
Medellín, once known for its turbulent past, has transformed into one of South America’s most innovative cities, earning the title of “Most Innovative City in the World” in 2013 by the Urban Land Institute

Challenges

  • North America:
    • Income Inequality: Despite economic strength, wealth disparity is growing, particularly in the U.S.
    • Aging Population: Canada and the U.S. are experiencing declining birth rates.
  • South America:
    • Economic Instability: Argentina and Venezuela struggle with inflation and currency crises.
    • Deforestation: Brazil’s Amazon rainforest is under severe threat, impacting climate and biodiversity.

Opportunities

  • North America:
    • Innovation in AI, renewable energy, and biotech could drive economic expansion.
    • Strengthened trade ties with Latin America could lead to growth.
  • South America:
    • Renewable Energy Boom: Chile leads in solar power, while Brazil invests in wind energy.
    • Tourism Potential: Rich cultural heritage and natural wonders attract millions of visitors.

Methodology

We sourced GDP, trade, and economic statistics from the World Bank, IMF, and government reports to ensure accuracy.

Population and urbanization data were retrieved from Worldometer, UN reports, and demographic studies. Cultural and linguistic differences were analyzed using historical references, colonial studies, and linguistic databases.

Trade agreements and economic structures were cross-referenced with sources like USTR, CFR, and regional economic organizations.

Income inequality and poverty metrics were gathered from CEPAL, IDB, and Reuters for a balanced perspective. Comparisons were structured using tables, regional breakdowns, and sourced insights to provide a clear, data-driven analysis.

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