Latin America and Caribbean economic growth trends

Economic assessments of Latin America and the Caribbean indicate modest growth levels. A World Bank report notes that while current growth reflects political stability, the region has not yet reached its maximum potential. To achieve sustained growth, the report suggests implementing productive reforms, well-designed industrial policies, and leveraging artificial intelligence, though it cautions that “digital access does not guarantee productive use, and algorithms do not automatically generate aggregate productivity.”

Data regarding investment levels further illustrates regional disparities. Between 1995 and 2024, the region averaged an annual growth rate of 2.3% with investment at approximately 19% of GDP. Specific national trends vary: the Dominican Republic has maintained an average investment rate of roughly 24% of GDP, resulting in approximately 5% annual growth over three decades. In contrast, Mexico has averaged approximately 2% annual growth during the same period, partly due to public investment declining from 7–10% of GDP during its industrialization phase to less than 3% following fiscal tightening.