Latin America Economic Outlook
Latin America’s GDP growth in 2026 is set to be the weakest since the 2020 pandemic downturn, weighed on by softer expansions in agricultural output in several countries and slower economic momentum in Argentina after 2025’s post-recession rebound. Paraguay and Venezuela are the only economies expected to expand by more than 3.0%, while most others are seen growing by 1.0–3.0%.
Latin America Inflation
Inflation trends have diverged sharply in 2026: Venezuela has recorded high triple-digit price growth, inflation in Argentina and Bolivia has averaged in double digits, while rates elsewhere have stayed between 1.0% and 6.0%. This three-speed pattern should persist through year-end. El Niño threatens renewed price pressures, especially across the Andean region.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2025.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| External Debt (% of GDP) | 42.6 | 37.7 | 34.9 | 34.4 | 36.7 |
| Merchandise Exports (USD bn) | 1,273 | 1,473 | 1,455 | 1,507 | 1,607 |
| Merchandise Trade Balance (USD bn) | 49 | -11 | 44 | 57 | 69 |
| International Reserves (USD bn) | 913 | 854 | 888 | 902 | 1,011 |
| GDP per Capita (USD) | 8,308 | 9,374 | 10,482 | 10,621 | 11,049 |
| Policy Interest Rate (%, eop) | 6.29 | 11.51 | 10.70 | 9.86 | 9.78 |
| Fiscal Balance (% of GDP) | -4.1 | -3.5 | -5.3 | -5.3 | -4.9 |
| Industrial Production (ann. var. %) | 7.7 | 2.2 | 0.1 | 0.2 | 0.5 |
| Fixed Investment (ann. var. %) | 16.3 | 4.9 | 4.2 | 2.3 | 2.3 |
| Economic Growth (Real GDP, ann. var. %) | 7.3 | 4.0 | 2.2 | 2.1 | 2.2 |
| Private Consumption (ann. var. %) | 8.3 | 5.2 | 2.6 | 2.9 | 2.6 |
| Inflation (CPI, ann. var. %, aop) | 10.2 | 15.6 | 18.5 | 24.8 | 7.9 |
| Public Debt (% of GDP) | 62.6 | 60.9 | 67.9 | 63.3 | 64.0 |
| Merchandise Imports (USD bn) | 1,224 | 1,485 | 1,411 | 1,450 | 1,538 |
| Unemployment (% of active population, aop) | 9.5 | 7.1 | 6.2 | 5.8 | 5.5 |
| Current Account Balance (% of GDP) | -1.8 | -2.3 | -1.2 | -1.2 | -1.1 |