Latin America Economic Outlook
GDP growth should gradually ease from 2024’s rate in 2025 and further in 2026, reaching its lowest level in six years. Challenges include lower exports to the U.S. due to tariffs, soft demand from key trade partner China, and sociopolitical instability. Downside risks include extreme weather hurting agricultural yields.
Latin America Inflation
Regional inflation trended down from January through August, largely thanks to a sharp deceleration of inflation in Argentina and lower global oil prices. Regional inflation is seen averaging at around a third of 2024’s rate this year, and to moderate further in 2026. Inflation will soar in Bolivia and Venezuela, and remain notably elevated in Argentina.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2025 to 2022.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Public Debt (% of GDP) | 68.9 | 62.8 | 61.0 | 67.8 | 63.1 |
| Merchandise Exports (USD bn) | 1,012 | 1,273 | 1,474 | 1,453 | 1,504 |
| GDP per Capita (USD) | 7,208 | 8,294 | 9,359 | 10,456 | 10,628 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,484 | 1,411 | 1,440 |
| Unemployment (% of active population, aop) | 10.3 | 9.5 | 7.1 | 6.2 | 5.9 |
| Merchandise Trade Balance (USD bn) | 103 | 49 | -11 | 43 | 64 |
| Policy Interest Rate (%, eop) | 5.84 | 9.53 | 18.93 | 20.18 | 12.11 |
| Private Consumption (annual variation in %) | -7.6 | 8.3 | 5.2 | 2.6 | 2.7 |
| International Reserves (USD bn) | 876 | 913 | 854 | 888 | 902 |
| Economic Growth (Real GDP, ann. var. %) | -6.6 | 7.3 | 3.9 | 2.3 | 2.1 |
| Industrial Production (ann. var. %) | -6.7 | 7.8 | 2.2 | 0.4 | 0.3 |
| Fiscal Balance (% of GDP) | -8.4 | -4.1 | -3.4 | -5.3 | -5.3 |
| Inflation (CPI, ann. var. %, aop) | 6.4 | 10.2 | 15.6 | 18.4 | 24.8 |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.9 | 34.3 |
| Investment (annual variation in %) | -11.5 | 16.4 | 5.3 | 4.2 | 2.5 |
| Current Account Balance (% of GDP) | -0.1 | -1.8 | -2.3 | -1.2 | -1.2 |