The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) forecasts a slow economic recovery in Latin America and the Caribbean.

ECLAC stressed that, after recovering in the first quarter of 2024, the region's GDP growth slowed down by the end of 2024 and is expected to decline to 2.2% in 2025 from 2.3% in 2024 and could reach 2.3% in 2026. This reflects a decade of low economic growth, with an average of only 1.2% in the 2016-2025 period, even lower than the level of the 1980s.

Notably, ECLAC said that in Latin America, the countries with the highest economic growth were Argentina 5.0%, Paraguay 4.0% and Peru 3.1%; countries with average growth included Colombia 2.5%, Chile 2.4%, El Salvador 2.4%, Brazil 2.3% and Venezuela 2.0%; countries with low growth included Bolivia and Ecuador 1.5%, Mexico 0.3%; countries facing economic recession were Cuba -1.5% and Haiti -2.3%.

“The Latin American and Caribbean region’s economic outlook in 2025 and 2026 is highly uncertain. The growth dynamics of regional economies could deteriorate due to rising global geopolitical risks, as evidenced by the possibility of Brazil being subject to 50% tariffs from the United States from August 7, 2025. In addition, the region is heavily affected by weakening external demand, especially from the United States, with Mexico being one of the most affected countries. In addition, growth dynamics are negatively impacted by restrictive financial conditions and fragility stemming from internal factors such as slowing consumption, low investment, high informal employment and persistent structural inequality,” the report notes.

“Latin America and the Caribbean needs to mobilize greater resources to overcome the pitfalls of low growth and high inequality. In the medium term, the region will face the challenge of maintaining macroeconomic stability and promoting productivity transformation in an increasingly volatile international environment. To address this challenge, a long-term strategic vision is needed to sustain sustainable and inclusive growth, with short-term macroeconomic policies that reduce risks and mitigate the impact of external shocks,” said ECLAC.

ECLAC proposes three strategic pillars for Latin America: (i) Mobilizing resources in the region through improving the quality of spending, increasing public investment, increasing budget revenues by reducing tax evasion and streamlining spending, while aiming for greater progressivity in the tax system; (ii) Diversifying external financing sources, redefining eligibility criteria for ODA, promoting the use of instruments such as bonds, debt swaps and blended finance; (iii) Strengthening the role of regional and international development banks for key sectors./.

Source: Foreign Market Development Department

Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/uy-ban-kinh-te-my-latinh-va-caribe-cua-lien-hiep-quoc-eclac-du-bao-kinh-te-my-latinh-va-caribe-phuc-hoi-cham.html