Latin America Economic Outlook
Despite a strong start, this year’s GDP expansion is poised to be the weakest since the pandemic slump of 2020. Headwinds include U.S. trade restrictions, sluggish demand from key partner China and political unrest in some countries. Partially offsetting these drags will be robust harvests in Brazil and Uruguay plus Argentina’s strong economic recovery.
Latin America Inflation
Regional inflation has declined steadily so far this year, largely thanks to disinflation progress in Argentina plus subdued global oil prices. In 2025 as a whole, inflation will fall from 2024 thanks to lower price pressures in Argentina, Colombia, Mexico and Peru. In contrast, average inflation will surge in Bolivia and Venezuela.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2024 to 2023.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Public Debt (% of GDP) | 68.9 | 62.8 | 61.0 | 67.8 | 63.0 |
| GDP per Capita (USD) | 7,208 | 8,294 | 9,359 | 10,455 | 10,628 |
| Current Account Balance (% of GDP) | -0.1 | -1.8 | -2.3 | -1.2 | -0.9 |
| Unemployment (% of active population, aop) | 10.3 | 9.5 | 7.1 | 6.2 | 5.9 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,484 | 1,411 | 1,440 |
| Economic Growth (Real GDP, ann. var. %) | -6.6 | 7.3 | 3.9 | 2.3 | 2.1 |
| Private Consumption (annual variation in %) | -7.6 | 8.3 | 5.2 | 2.6 | 2.7 |
| Investment (annual variation in %) | -11.5 | 16.4 | 5.3 | 4.2 | 2.5 |
| 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 | 10.0 | 15.6 | 18.4 | 24.8 |
| International Reserves (USD bn) | 876 | 913 | 854 | 888 | 901 |
| Merchandise Exports (USD bn) | 1,012 | 1,273 | 1,474 | 1,453 | 1,504 |
| Policy Interest Rate (%, eop) | 5.84 | 9.53 | 18.93 | 20.18 | 12.11 |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.9 | 34.4 |