Latin America Economic Outlook
The regional economy should pick up momentum this year from 2024, primarily on Argentina’s shift from recession to region-leading growth. Most other economies will decelerate. Additionally, Latin America is projected to remain the slowest-growing emerging market, hindered by political uncertainty, crime, corruption, and a lack of high-value-added industries.
Latin America Inflation
From December to January, inflation fell in Argentina, Brazil, Ecuador, Mexico, Peru, and Uruguay, rose in Bolivia and Chile, and was stable in Colombia and Paraguay. In 2025, regional average inflation will fall acutely as price pressures in Argentina tumble. Upside risks include faster-than-expected currency depreciation and regional geopolitical instability.
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) | 7,193 | 8,277 | 9,341 | 10,424 | - |
| 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 | 0.3 |
| 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 | 61.1 | - | - |
| Inflation (CPI, ann. var. %, aop) | 6.4 | 10.0 | 15.6 | 18.2 | 24.2 |
| 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 | 1,453 | - |
| Policy Interest Rate (%, eop) | 5.86 | 9.59 | 19.02 | 20.29 | 12.11 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,483 | 1,395 | - |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.9 | - |