Latin America Economic Outlook
The economy is forecast to expand at the weakest rate in six years in 2026 and notably below the global average. Only Paraguay is forecast to see growth above 3%, with most remaining economies to grow in the 1.0–3.0% range. Venezuela is forecast to stagnate due to rapid currency depreciation, while Bolivia’s economy is expected to shrink amid sky-high price pressures.
Latin America Inflation
Regional inflation tumbled from January through September, largely thanks to a sharp deceleration of inflation in Argentina. A majority of Latin American economies should see lower average inflation in 2026 vs 2025, with Bolivia and Venezuela notable exceptions. In particular, Venezuela could see the world’s highest inflation rate next year as the bolívar crumbles.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2025 to 2022.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Investment (annual variation in %) | -11.5 | 16.4 | 5.3 | 3.1 | 2.4 |
| Industrial Production (ann. var. %) | -6.7 | 7.8 | 2.2 | 0.2 | 0.0 |
| Private Consumption (annual variation in %) | -7.6 | 8.3 | 5.2 | 2.6 | 2.8 |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.9 | 34.2 |
| Public Debt (% of GDP) | 68.8 | 62.8 | 61.0 | 67.8 | 63.1 |
| Merchandise Exports (USD bn) | 1,012 | 1,273 | 1,474 | 1,453 | 1,505 |
| International Reserves (USD bn) | 876 | 913 | 854 | 888 | 902 |
| GDP per Capita (USD) | 7,202 | 8,287 | 9,353 | 10,448 | 10,620 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,484 | 1,411 | 1,440 |
| Merchandise Trade Balance (USD bn) | 103 | 49 | -11 | 43 | 65 |
| Policy Interest Rate (%, eop) | 2.49 | 6.29 | 11.51 | 10.70 | 9.85 |
| Inflation (CPI, ann. var. %, aop) | 6.4 | 10.2 | 15.6 | 18.4 | 24.8 |
| Unemployment (% of active population, aop) | 10.3 | 9.5 | 7.1 | 6.2 | 5.9 |
| Economic Growth (Real GDP, ann. var. %) | -6.6 | 7.3 | 3.9 | 2.3 | 2.1 |
| Fiscal Balance (% of GDP) | -8.4 | -4.1 | -3.4 | -5.3 | -5.3 |
| Current Account Balance (% of GDP) | -0.1 | -1.8 | -2.3 | -1.2 | -1.2 |