Latin America Economic Outlook
This year, Latin America’s economy will continue to grow less than the global average due to factors such as limp productivity growth, political instability and a lack of presence in fast-growing economic sectors. Argentina, Paraguay and Venezuela will be the only economies to expand above 3%, with most countries forecast to post growth between 1.0% and 3.0%.
Latin America Inflation
So far this year, inflation has been in high triple digits in Venezuela due to a collapsing currency, double digits in Argentina and Bolivia and between 1.0% and 6.0% in most other countries. This pattern of Venezuelan hyperinflation, double-digit price gains in Argentina and Bolivia and moderate inflation elsewhere should persist later this year.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2025.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Fixed Investment (ann. var. %) | 16.6 | 5.3 | 2.4 | 2.1 | 2.3 |
| Merchandise Imports (USD bn) | 1,224 | 1,485 | 1,411 | 1,449 | 1,538 |
| Fiscal Balance (% of GDP) | -4.1 | -3.5 | -5.3 | -5.3 | -4.9 |
| External Debt (% of GDP) | 42.6 | 37.7 | 34.9 | 34.4 | 36.3 |
| Merchandise Trade Balance (USD bn) | 49 | -11 | 43 | 56 | 68 |
| Merchandise Exports (USD bn) | 1,273 | 1,473 | 1,454 | 1,506 | 1,606 |
| GDP per Capita (USD) | 8,308 | 9,374 | 10,473 | 10,614 | 11,043 |
| Public Debt (% of GDP) | 62.7 | 60.9 | 67.9 | 63.3 | 64.0 |
| Unemployment (% of active population, aop) | 9.5 | 7.1 | 6.2 | 5.8 | 5.5 |
| Private Consumption (ann. var. %) | 8.4 | 5.2 | 2.6 | 2.8 | 2.6 |
| Economic Growth (Real GDP, ann. var. %) | 7.3 | 4.0 | 2.2 | 2.1 | 2.2 |
| Industrial Production (ann. var. %) | 7.8 | 2.2 | 0.2 | 0.1 | 1.1 |
| International Reserves (USD bn) | 913 | 854 | 888 | 902 | 1,011 |
| Current Account Balance (% of GDP) | -1.8 | -2.3 | -1.2 | -1.2 | -1.1 |
| Inflation (CPI, ann. var. %, aop) | 10.2 | 15.6 | 18.4 | 24.8 | 7.9 |
| Policy Interest Rate (%, eop) | 6.29 | 11.51 | 10.70 | 9.86 | 9.78 |