Latin America Economic Outlook
GDP growth this year is set to hit its lowest since the pandemic-driven downturn of 2020. A mix of U.S. trade barriers, economic slowdown in major trade partner China, and sociopolitical instability in certain nations will weigh on performance. On the upside, strong crop harvests in Brazil and Uruguay, along with Argentina’s economic rebound, will provide a boost.
Latin America Inflation
Regional inflation likely eased for the 14th straight month in June, largely thanks to progress with disinflation in Argentina plus subdued global oil prices. In 2025 as a whole, inflation will decline from last year’s outturn thanks to lower price pressures in Argentina, Colombia, Mexico and Peru. In contrast, inflation will surge in Bolivia and Venezuela.
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) | 7,206 | 8,291 | 9,356 | 10,452 | - |
| 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 | 0.3 |
| 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 | 18.4 | 24.8 |
| 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 | 1,453 | - |
| Policy Interest Rate (%, eop) | 5.84 | 9.53 | 18.93 | 20.18 | 12.11 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,483 | 1,404 | - |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.9 | - |