Latin America's 2025 Economic Outlook
Latin America's 2025 Economic Outlook
The region’s growth continues to be slow and steady, with positive projections for 2025.
This piece was originally published on January 16, 2025 and has since been updated.
Latin America and the Caribbean’s GDP growth hit 2.4 percent in 2024, according to the International Monetary Fund’s January 2025 update of their World Economic Outlook report. The Economic Commission for Latin America and the Caribbean (ECLAC) also reached a similar, slightly lower conclusion, in its preliminary overview report of the region’s economies: 2.2 percent growth for 2024.
While the report notes that Latin America has been in a “trap of low growth capacity” over the last decade, with an average growth rate of 1 percent annually, the growth in 2024 was slightly higher than what ECLAC originally projected for the year—1.9 percent.
How is each country in the region faring? And what can be expected in 2025?
In 2025, GDP growth across the region is projected to be slightly higher, at 2.5 percent according to the IMF and 2.4 percent according to ECLAC. That’s lower than the IMF’s 2025 global GDP growth projection of 3.3 percent.
Although growth has been gradual, there is good news for the region’s economy: the IMF’s World Economic Outlook says that inflation rates across the region have “dropped significantly from their peaks” and continue to decrease. Unemployment in the region is also at historically low levels.
AS/COA Online breaks down ECLAC’s regional GDP figures, the IMF’s inflation rates, and other economic indicators.
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