ECLAC lowers Latin America and Caribbean 2026 growth forecast to 2.2%

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has lowered its 2026 economic growth forecast for the region to 2.2%, a slowdown from the 2.4% projected for 2025. The organization warns that this trend could result in five consecutive years of average growth around 2.3%, a rate insufficient for increasing per capita income or reducing development gaps.

ECLAC Executive Secretary José Manuel Salazar-Xirinachs emphasized the need for increased investment, productivity, and formal employment to escape the low-growth trap. Structural constraints, including low investment levels and high informal employment, remain primary obstacles. Global factors such as geopolitical tensions, energy supply disruptions, and high international interest rates are also expected to tighten financing conditions for emerging economies.

Growth projections vary significantly by subregion and country. The Dominican Republic is expected to be among the region's fastest growers, with a projected 4.0% growth in 2026 and 4.4% in 2027. Other notable performers include Venezuela (6.5%), Nicaragua (4.5%), and Panama (4.4%). Conversely, Mexico (1.3%) and Brazil (2.2%) are expected to grow more slowly, while Cuba and Haiti are projected to experience economic contractions of 10.3% and 1.9%, respectively.