ECLAC warns of low growth trap in Latin America

The Economic Commission for Latin America and the Caribbean (ECLAC) has released its Economic Survey for Latin America and the Caribbean, highlighting significant challenges to regional growth. The report identifies a “low capacity to grow trap,” characterized by low investment levels, stagnant productivity, and high informality. Economic growth in the region has slowed significantly, with GDP growth averaging only 1.4% annually since 2016, compared to 2% during the previous decade.

In a related presentation in Rio de Janeiro, ECLAC and the Brazilian Development Bank (BNDES) discussed the report “Ruptures and Opportunities: Proposals for Latin America and the Caribbean to Prosper in the New Geopolitical Era.” The document suggests that the region must move beyond the mere extraction and export of resources in sectors like agriculture, mining, and energy. Instead, it advocates for creating added value through local processing, industrialization, and the development of domestic suppliers.

The strategy emphasizes leveraging regional assets—such as critical minerals, biodiversity, and food—within a shifting geopolitical landscape. Key recommendations include strengthening institutions, fostering pragmatic cooperation between nations, and diversifying international partnerships to avoid rigid geopolitical alignments.