Latin America faces geopolitical shifts and economic challenges

Latin America is facing a period of geopolitical and economic redefinition characterized by social instability and shifting global influences. The region is grappling with rising insecurity, organized crime, corruption, and high levels of informal employment. These challenges, alongside a dramatic migration crisis, have contributed to the rise of conservative and far-right political movements that capitalize on anti-establishment sentiment among voters.

Geopolitically, the region is navigating a landscape shaped by the influence of the United States and the economic expansion of China. While Latin America holds critical mineral assets essential for the global energy transition and decarbonization, economic growth remains modest, projected between 2.0% and 2.2% for 2026. Experts warn that without strong institutions and standardized environmental, social, and governance (ESG) criteria, the region risks remaining a mere exporter of raw materials without achieving significant domestic prosperity.