The economy of Latin America and the Caribbean would grow 2.4% this year and 2.3% next, amid weak dynamism in domestic demand and global uncertainty, ECLAC said on Tuesday.
The Economic Commission for Latin America and the Caribbean (ECLAC), dependent on the United Nations, maintained its projections for the total regional performance for both years, although it adjusted calculations for some countries.
“Some countries recorded higher exports of goods and services, while others were affected by pressure on the terms of trade and greater trade volatility,” he noted in his report.
For 2026, the outlook “indicates that the region will continue to follow a path of low dynamism, characterized by moderate growth rates, a fragile international environment and persistent internal limitations to boost investment, strengthen productivity and expand formal employment,” he added.
The agency noted that labor markets continue to recover, but at a slower pace. Employment is growing moderately, gaps in labor participation and unemployment between men and women persist, and informality remains high in most countries, which restricts the drive for consumption.
It maintained the estimated increase in Brazil’s Gross Domestic Product (GDP) at 2.5%, and cut Mexico’s to 0.4%, from the 0.6% it had forecast in October, due to a weakening of domestic demand, as a consequence of a lower flow of remittances and the fall in private consumption and investment.
On the other hand, it maintained the forecast for Argentina at 4.3% and Peru at 3.2%, raised 0.1 points to 2.6% for Colombia and reduced it by 0.1 points to 2.5% for Chile.
The regional economy continued to rely heavily on service sectors, which account for the largest proportion of value added and continue to lead job creation and post-COVID-19 pandemic recovery, he highlighted.
“At the subregional level, both South America and Central America have shown a slowdown in their economic growth since the second half of 2022, which has converged at rates close to 2.5% and 3%, respectively,” he said.
Meanwhile, he highlighted that inflation continued to decline throughout 2025 in the region, consolidating the process that began in 2024.
With information from Reuters
