ECLAC Projects Mixed Growth Outlook for Latin America in 2025

South America’s economy is set to expand by 2.7% in 2025, supported by robust performances in Argentina, Ecuador, Colombia, and Paraguay, according to new projections from the Economic Commission for Latin America and the Caribbean.

Argentina is expected to lead the region with 5% growth, followed by Panama at 4.2%, Paraguay at 4%, the Dominican Republic at 3.7%, Guatemala at 3.6%, and Costa Rica at 3.5%.

Moderate gains are forecast for Honduras (3.2%), Nicaragua (3.1%), Peru (3.1%), Uruguay (2.8%), Colombia (2.5%), Chile (2.4%), El Salvador (2.4%), Brazil (2.3%), and Venezuela (2%).

Bolivia and Ecuador are projected to post 1.5% growth each, while Mexico is expected to expand only 0.3%, reflecting its heavy exposure to slowing U.S. demand.

The Caribbean region, excluding Guyana, is projected to grow 1.8%. Guyana remains a standout, with oil production driving a forecasted 10.3% surge.

ECLAC also noted that economic momentum across most countries will ease compared to 2024 levels, with South America’s growth seen moderating further to 2.4% in 2026. Cuba and Haiti are the only economies expected to contract in 2025, shrinking 1.5% and 2.3%, respectively.