How much the economies of Colombia and other Latin countries would grow in 2025 and 2026

The World Bank (WB) updated its growth projections for Latin America and the Caribbean. According to the international organization, a slight improvement in the figures is expected, even as the global economy faces several challenges.

For all countries, the WB expects the growth rate to increase to 2.3% by the end of 2025. A year later, the outlook looks even better, since it is estimated that the indicator for the region is 2.5%.

The entity highlighted that the slowdown in the fall of interest rates in advanced economies has conditioned that cuts are maintained and financial relief is postponed necessary for households, banks and governments’ fiscal accounts. Added to this is that investment, both public and private, continues to not take off.

Below, we present a summary of the growth forecasts for some of the countries in the region.

Colombia

The World Bank estimates that the national territory will show a stronger performance than in 2024, supported by the recovery of private consumption and investment as inflation moderates. In that order of ideas, Colombia would close 2025 with a GDP close to 2.4% and, within a year, this figure could climb to 2.7%.

Colombian flag

Source: IStock

Mexico

The report emphasizes that Mexico’s growth could slow down in 2025, “as momentum from large public infrastructure projects dissipates and increased trade restrictions, particularly new US tariffs, begin to weigh on external demand.”

Thus, the report sets its forecasts up to 0.5% for this year1.4% for the next and 1.9% for 2027.

Mexican pesos.

iStock

Brazil

A slowdown in growth is also projected in Brazil, as a result of restrictive monetary policies and limited fiscal support that will weigh on investment and consumer spending.

In this way, the WB report maintains the growth estimate for this year for the large South American economy at 2.4% and the 2026 forecast at 2.2%, the same as the last study.

Brazilian reals

istock

Argentina

According to the World Bank, The nation is experiencing a remarkable economic recovery in 2025 and stands out in the region after two consecutive years of contraction. The rebound is mainly due to the recovery of agricultural exports, as well as improvements in consumption and investment.

The projections are then aimed at registering growth close to 4.6% for this year and 4% for 2026 and 2027.

Argentine pesos

EFE

Chili

The nation, according to the report, will benefit from a strengthening of private consumption along with its mining exports. So, it is expected to register a growth of 2.6% for this year.

However, in 2026 a decrease in GDP is estimated, reaching 2.2%. This trend would continue in 2027, reaching 2.1%.