ECLAC projects 2% growth for Latin America in 2026

The Economic Commission for Latin America and the Caribbean (ECLAC) has lowered its economic growth forecast for the region to 2% for 2026, down from 2.4% in 2025. The organization anticipates a moderate recovery to 2.5% in 2027.

The slowdown is attributed to international uncertainty, including geopolitical tensions, logistical disruptions, and unpredictable trade policies. Additionally, rising financing costs due to interest rate hikes by the US Federal Reserve and the European Central Bank are expected to increase debt service burdens and restrict investment.

Growth projections vary significantly across the region. Venezuela is expected to lead with 6.5% growth, followed by Panama, Paraguay, and El Salvador at 4.5% each. Conversely, Chile and Bolivia are projected to see minimal expansion of 0.2%, while Cuba and Haiti face significant economic contractions.

Subregional outlooks show South America growing by 2.1% in 2026, while Central America is projected at 1.7%. The Caribbean is expected to grow by 7.4%, though this figure is heavily influenced by Guyana; without it, the subregional growth would drop to 1.2%.