Latin America Economic Outlook
The Latin American economy is expected to grow at a pace comparable to 2024 in 2025. Growth will be supported by recoveries in Argentina and Ecuador, along with faster expansion in Colombia and Bolivia. However, much of the region is projected to slow, weighed on by a more protectionist global trade climate and weaker demand from major partners China and the U.S.
Latin America Inflation
From February to March, inflation decreased in Argentina, Colombia, and Peru; remained stable in Mexico; and increased in Bolivia, Brazil, Chile, Ecuador, Paraguay, and Uruguay. In 2025, regional average inflation will fall amid lower price pressures in Argentina, Colombia, Mexico and Peru. Faster-than-expected currency depreciation is a key upside 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) | 7,200 | 8,286 | 9,350 | 10,436 | - |
| 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 | 0.3 | 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 | 61.1 | - | - |
| Inflation (CPI, ann. var. %, aop) | 6.4 | 10.0 | 15.6 | 18.2 | 24.7 |
| 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 | 1,473 | 1,452 | - |
| Policy Interest Rate (%, eop) | 5.84 | 9.54 | 18.92 | 20.15 | 12.10 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,483 | 1,395 | - |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.9 | 35.0 | - |