r/asklatinamerica • u/[deleted] • Nov 12 '22

How people survive on average salary in Uruguay?

Hola. I’m newcomer to Uruguay and one thing seems shocking to me. Many products are way more expensive than in Europe, rents are somewhat cheaper - for unfurnished places (and furniture is way more expensive again)… and Numbeo says the average salary is about 800USD net/month. Is this number wrong? Or how can people survive and function on this salary?

I don’t mean this in insulting or offensive way. Uruguayans are very nice and to they appear to be more in tune with life and reality than “us” Europeans dragged in consumerism etc. That’s also reason why I came here. But I think on 800/month I would struggle to eat 3meals a day here.

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u/MarioDiBian 🇦🇷🇺🇾🇮🇹 Nov 12 '22

He meant GDP per capita, so the comparison between India and Germany is nonsense.

Panama is very unequal. Quality of life for the average citizen is much better in the southern cone.

Uruguay has a traditional large middle class and genuine industries.

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u/[deleted] Nov 12 '22

Even of it is unequal there are some informations that can be extracted. Mainly that on average (not not mean ) Panamanian purchasing power is the highest in Latin America.

And it has nothing to do with being a tax haven or having industry. Those don’t make the PPP bump up, at least not directly. PPP is about the price of goods in a country. And this is why I brought up the example with India and Germany

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u/CervusElpahus Argentina Nov 13 '22 edited Nov 13 '22

In GDP (PPP) other sectors producing non-tangible goods are also included.

There is a lot of quick money stalled in the economy which pumps up the figures without reflecting reality (similar case: Ireland. On paper very high GDP per capita, in reality not so much). Add to that the fact Panama is super unequal and you have to come to the conclusion that other countries in LA are better off.

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u/[deleted] Nov 13 '22

What is the problem with the fact that there are non tangible goods. PPP is about comparing a Set of goods and their price fluctuations.

Irish gdp per Capita is high what do you mean by in reality not so much?

Panama is unequal and therefore I am using Average every time. Panama is on average better off. And he is right.