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Latin America Economic Forecast

Latin America Economic Outlook

This year, GDP growth will be the weakest since 2020’s pandemic-induced contraction. U.S. trade protectionism, softer economic momentum in key trade partner China and political uncertainty in some countries will cap activity. In contrast, bumper harvests in Brazil and Uruguay plus a resurgent Argentinian economy will be regional tailwinds.

Latin America Inflation

Regional inflation eased for the thirteenth straight month in May, largely thanks to the ongoing disinflationary process in Argentina plus subdued global oil prices. In 2025 as a whole, inflation will be below 2024’s level thanks to lower price pressures in Argentina, Colombia, Mexico and Peru. Currency and commodity price volatility is the key risk.

This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2023.

2020 2021 2022 2023 2024
GDP per Capita (USD) 7,205 8,292 9,357 10,450 -
Economic Growth (Real GDP, ann. var. %) -6.6 7.3 3.9 2.3 -
Private Consumption (annual variation in %) -7.6 8.3 5.2 2.6 -
Investment (annual variation in %) -11.5 16.4 5.3 4.2 -
Industrial Production (ann. var. %) -6.7 7.8 2.2 0.4 0.2
Unemployment (% of active population, aop) 10.3 9.5 7.1 6.2 -
Fiscal Balance (% of GDP) -8.4 -4.1 -3.4 - -
Public Debt (% of GDP) 68.9 62.8 61.0 - -
Inflation (CPI, ann. var. %, aop) 6.4 10.0 15.6 18.2 24.6
International Reserves (USD bn) 876 913 854 888 -
Current Account Balance (% of GDP) -0.1 -1.8 -2.3 -1.2 -
Merchandise Exports (USD bn) 1,012 1,273 1,474 1,452 -
Policy Interest Rate (%, eop) 5.84 9.53 18.91 20.14 12.10
Merchandise Imports (USD bn) 908 1,224 1,483 1,395 -
External Debt (% of GDP) 48.1 42.7 37.8 35.0 -

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