# Latin America and Caribbean economic growth outlook

> Live situation record from CLSTR: https://clstr.news/situations/latin-america-and-caribbean-economic-growth-outlook
> Updated: 2026-09-14T01:59:50.000Z. Sources: 18. Developments: 3.

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has issued warnings regarding the region’s economic trajectory, noting a slowdown in growth projections. In August 2026, ECLAC lowered its growth forecast for the region to 2.2%, down from 2.4% projected for 2025. This trend suggests a potential period of five consecutive years of average growth around 2.3%, a rate deemed insufficient to raise per capita income or reduce development gaps.

By September 2026, ECLAC identified high levels of labor informality—affecting nearly half of the region’s workers—as a primary structural barrier to productivity. While growth is projected at 2.2% for 2026 and 2.5% for 2027, the organization noted the region is caught in a “low capacity to grow trap” caused by low investment and difficulties in generating formal employment. ECLAC noted that since 2016, regional GDP growth has averaged only 1.4% annually, compared to 2% during the previous decade.

Additionally, progress toward the 2030 Sustainable Development Goals (SDGs) is stalling. Only 19% of evaluated goals are on track, while 39% have stagnated or regressed due to inequality, institutional weaknesses, and limited fiscal space. Approximately 42% of goals are moving in the right direction but too slowly.

In a related presentation in Rio de Janeiro, ECLAC and the Brazilian Development Bank (BNDES) discussed proposals for the region to prosper in a new geopolitical era. The report suggests moving beyond the extraction and export of resources in agriculture, mining, and energy toward creating added value through local processing and industrialization. Recommendations include strengthening institutions and diversifying international partnerships to avoid rigid geopolitical alignments.

## Timeline

### 2026-09-14: ECLAC warns of low growth trap in Latin America

ECLAC reports that Latin America faces a “low capacity to grow trap” due to low investment and productivity, urging the region to industrialize and add value to its natural resources.

4 sources. https://clstr.news/cluster/eclac-warns-of-low-growth-trap-in-latin-america

### 2026-09-08: ECLAC reports labor informality and slow growth hinder Latin American development

ECLAC warns that labor informality and low growth are hindering productivity and development in Latin America, with only 19% of Sustainable Development Goals currently on track for 2030.

5 sources. https://clstr.news/cluster/eclac-reports-labor-informality-and-slow-growth-hinder-latin-american-development

### 2026-08-25: ECLAC lowers Latin America and Caribbean 2026 growth forecast to 2.2%

ECLAC has lowered its 2026 growth forecast for Latin America and the Caribbean to 2.2%, citing structural constraints, while the Dominican Republic is expected to outpace the regional average.

9 sources. https://clstr.news/cluster/eclac-lowers-latin-america-and-caribbean-2026-growth-forecast-to-22

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Cite as: Latin America and Caribbean economic growth outlook. CLSTR, https://clstr.news/situations/latin-america-and-caribbean-economic-growth-outlook