Latin America Economic Outlook
Latin America’s GDP growth in 2026 is set to be the weakest since the 2020 pandemic downturn, due to slowdowns in key economies such as Argentina and Brazil. Paraguay and Venezuela are the only economies projected to expand above 3.0%, with most others seen growing 1.0–3.0%. In 2027, the regional economy should accelerate but remain subdued by global standards.
Latin America Inflation
Inflation trends have diverged sharply in 2026: Venezuela has registered high triple-digit price growth, inflation in Argentina and Bolivia has been in double digits, while rates elsewhere have stayed between 1.0% and 6.0%. This three-speed pattern should persist this year and next. 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 2026.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Merchandise Imports (USD bn) | 1,224 | 1,485 | 1,408 | 1,449 | 1,538 |
| GDP per Capita (USD) | 8,308 | 9,374 | 10,482 | 10,621 | 11,048 |
| 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 |
| External Debt (% of GDP) | 42.6 | 37.7 | 34.9 | 34.9 | 36.6 |
| Merchandise Exports (USD bn) | 1,273 | 1,473 | 1,455 | 1,507 | 1,607 |
| Policy Interest Rate (%, eop) | 6.30 | 11.53 | 10.71 | 9.87 | 9.79 |
| Public Debt (% of GDP) | 62.6 | 60.9 | 67.8 | 63.3 | 63.9 |
| Inflation (CPI, ann. var. %, aop) | 10.2 | 15.6 | 18.5 | 24.8 | 7.9 |
| Unemployment (% of active population, aop) | 9.5 | 7.2 | 6.2 | 5.9 | 5.5 |
| Merchandise Trade Balance (USD bn) | 49 | -11 | 47 | 57 | 69 |
| Economic Growth (Real GDP, ann. var. %) | 7.3 | 4.0 | 2.2 | 2.1 | 2.2 |
| Fiscal Balance (% of GDP) | -4.1 | -3.5 | -5.3 | -5.3 | -4.9 |
| Current Account Balance (% of GDP) | -1.8 | -2.3 | -1.2 | -1.2 | -1.1 |
| Private Consumption (ann. var. %) | 8.3 | 5.2 | 2.6 | 2.9 | 2.6 |
| International Reserves (USD bn) | 913 | 854 | 888 | 902 | 1,011 |