Central America and Caribbean Economic Outlook
In 2025, CENAM GDP growth will be the slowest since the Covid-19 pandemic in 2020 as both fixed investment and private spending decelerate. Protectionism, slowing economic momentum and ramped up deportations in the U.S. will weigh on CENAM’s economy. Immigration and trade policies in the U.S. are key risk factors to monitor.
Central America and Caribbean Inflation
In July, CENAM inflation inched down to a nine-month low, with price pressures easing in most of the region. In 2025 as a whole, average inflation should be close to 2024 levels, as interest rate cuts and sharper year-on-year currency depreciation broadly offset downside pressures from lower oil prices and subdued private consumption.
This chart displays Economic Growth (Real GDP, ann. var. %) for Central America and Caribbean from 2010 to 2024.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 5,453 | 6,086 | 6,720 | 7,209 | 7,646 |
| External Debt (% of GDP) | 73.4 | 67.8 | 64.0 | 61.6 | 60.1 |
| Merchandise Exports (USD bn) | 132.5 | 151.5 | 171.8 | 167.6 | 168.9 |
| Merchandise Imports (USD bn) | 151.9 | 190.6 | 232.6 | 234.3 | 224.1 |
| Public Debt (% of GDP) | 62.6 | 58.4 | 54.8 | 52.4 | 51.9 |
| Economic Growth (Real GDP, ann. var. %) | -7.5 | 8.1 | 4.6 | 2.9 | 3.3 |
| Policy Interest Rate (%, eop) | 2.05 | 2.46 | 6.36 | 5.67 | 4.96 |
| Current Account Balance (% of GDP) | 0.3 | - | -1.7 | -0.4 | -0.1 |
| Fiscal Balance (% of GDP) | -7.5 | -3.8 | -2.1 | -2.5 | -3.2 |
| International Reserves (USD bn) | 74.2 | 80.4 | 79.3 | 86.9 | 90.9 |
| Private Consumption (annual variation in %) | - | - | 4.5 | 3.2 | 4.0 |
| Unemployment (% of active population, aop) | 9.3 | 8.6 | 6.9 | 5.7 | 6.1 |
| Investment (annual variation in %) | - | - | 5.6 | 7.1 | 4.9 |
| Inflation (CPI, ann. var. %, aop) | 2.1 | 3.9 | 7.6 | 5.3 | 3.1 |