Latin America’s economic growth is projected to decelerate to 2.2% in 2026, down from a prior estimate of 2.3% and below the 2.4% expansion anticipated for 2025, according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
The agency attributed the downward revision to a "more challenging international environment," while noting that macroeconomic stability is expected to persist as inflation converges toward central bank targets amid gradual improvements in external conditions.
Over the medium term, the region is set to complete five consecutive years of average annual growth near 2.3% by 2027, following a 2025 expansion of 2.4%. Structural constraints, including low investment, weak productivity and elevated informal employment, continue to weigh on potential output.
Country-level forecasts show uneven momentum. Brazil’s GDP is seen expanding 2.2% in both 2026 and 2027, while Mexico’s growth is projected at 1.3% in 2026 and 1.9% in 2027. Argentina is expected to outperform with 3.3% growth in 2026 and 3.4% in 2027, while Venezuela leads the region with a 6.5% expansion in both years.
