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August 5, 2025
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Latin America improves its growth forecast, Mexico stagnates: ECLAC

Latin America improves its growth forecast, Mexico stagnates: ECLAC

The agency updated on Tuesday its prospects for the region, where several countries showed improvements. According to the report, regional growth will be marked by an uncertain global environment, characterized by geopolitical tensions, greater protectionism, possible disruptions in supply chains and restrictive financial conditions.

Nevertheless, ECLAC raised its projections for countries such as Brazil (2.3%), Chile (2.4%) and Venezuelawhile the forecast for Mexico remained stagnant.

“Economic performance will continue to be conditioned by the weakness of external demand, restrictive financial conditions and the fragility derived from internal factors such as a lower dynamism of consumption, a low investment, a high labor informality and the persistent structural inequalities,” said ECLAC in its report.

Although regional inflation has stabilized around 3%, the Commission warned that inflationary risks are kept up, and that employment creation will decelerate in the coming months.

By 2026, the panorama does not improve much for Mexico, ECLAC estimates a GDP growth of just 1%, while countries like Argentina and Chile would reach expansions of 4.0%and 2.2%, respectively.

With Reuters information



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