Latin America Economic Outlook
2026 GDP growth will be the slowest in six years and well under the global norm. Argentina and Paraguay are the only countries projected to grow above 3%, with most economies set to record expansions between 1.0% and 3.0%. Venezuela is set to flatline as its currency rapidly erodes, and Bolivia is projected to contract under extremely elevated inflationary pressures.
Latin America Inflation
Regional inflation plunged between January and October, driven mainly by Argentina’s steep slowdown in price growth. Most Latin American countries will record lower average inflation in 2026 than in 2025, with Bolivia and Venezuela exceptions. Venezuela, in particular, may face the highest inflation rate globally next year as the bolívar continues to collapse.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2025.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 7,211 | 8,300 | 9,364 | 10,454 | 10,603 |
| Policy Interest Rate (%, eop) | 2.49 | 6.29 | 11.51 | 10.70 | 9.86 |
| Investment (annual variation in %) | -11.5 | 16.4 | 5.3 | 3.1 | 2.2 |
| Merchandise Exports (USD bn) | 1,012 | 1,273 | 1,474 | 1,453 | 1,506 |
| Merchandise Imports (USD bn) | 908 | 1,224 | 1,484 | 1,411 | 1,448 |
| External Debt (% of GDP) | 48.1 | 42.7 | 37.8 | 34.8 | 34.5 |
| Merchandise Trade Balance (USD bn) | 103 | 49 | -11 | 43 | 58 |
| Industrial Production (ann. var. %) | -6.7 | 6.8 | 1.9 | 0.4 | 1.4 |
| Public Debt (% of GDP) | 68.8 | 62.8 | 61.1 | 67.9 | 63.3 |
| Fiscal Balance (% of GDP) | -8.7 | -4.1 | -3.5 | -5.3 | -5.4 |
| International Reserves (USD bn) | 876 | 913 | 854 | 888 | 902 |
| Private Consumption (annual variation in %) | -7.6 | 8.3 | 5.2 | 2.6 | 2.9 |
| Economic Growth (Real GDP, ann. var. %) | -6.6 | 7.3 | 3.9 | 2.2 | 2.1 |
| Unemployment (% of active population, aop) | 10.2 | 9.5 | 7.1 | 6.2 | 5.9 |
| Inflation (CPI, ann. var. %, aop) | 6.4 | 10.2 | 15.6 | 18.4 | 24.8 |
| Current Account Balance (% of GDP) | -0.1 | -1.8 | -2.3 | -1.2 | -1.2 |