Latin America Economic Outlook
Latin America’s GDP expansion in 2026 is set to be the weakest since 2020’s pandemic-induced downturn on softening agricultural growth in multiple countries and a normalization of growth in Argentina following 2025’s post-recession recovery. Paraguay and Venezuela are the only economies forecast to grow above 3.0%, while most others are projected to expand by 1.0–3.0%.
Latin America Inflation
So far in 2026, inflation has averaged in high triple digits in Venezuela due to currency depreciation, double digits in Argentina and Bolivia, and a more contained 1.0–6.0% elsewhere. The three-tier inflation landscape is projected to continue for the remainder of this year. El Niño poses an upside risk to prices, particularly in Andean economies.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2025.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| External Debt (% of GDP) | 42.6 | 37.7 | 34.9 | 34.4 | 36.0 |
| Merchandise Exports (USD bn) | 1,273 | 1,473 | 1,454 | 1,506 | 1,607 |
| GDP per Capita (USD) | 8,308 | 9,374 | 10,482 | 10,621 | 11,049 |
| Policy Interest Rate (%, eop) | 6.29 | 11.51 | 10.70 | 9.86 | 9.78 |
| Fiscal Balance (% of GDP) | -4.1 | -3.5 | -5.3 | -5.3 | -4.9 |
| Merchandise Trade Balance (USD bn) | 49 | -11 | 42 | 56 | 68 |
| Industrial Production (ann. var. %) | 7.7 | 2.2 | 0.1 | 0.2 | 0.5 |
| Fixed Investment (ann. var. %) | 16.3 | 4.9 | 4.2 | 2.3 | 2.3 |
| Economic Growth (Real GDP, ann. var. %) | 7.3 | 4.0 | 2.2 | 2.1 | 2.2 |
| Private Consumption (ann. var. %) | 8.3 | 5.2 | 2.6 | 2.9 | 2.6 |
| Inflation (CPI, ann. var. %, aop) | 10.2 | 15.6 | 18.5 | 24.8 | 7.9 |
| Public Debt (% of GDP) | 62.6 | 60.9 | 67.9 | 63.3 | 64.0 |
| Merchandise Imports (USD bn) | 1,224 | 1,485 | 1,411 | 1,450 | 1,538 |
| Unemployment (% of active population, aop) | 9.5 | 7.1 | 6.2 | 5.8 | 5.5 |
| 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 |