Dec. 19 (UPI) -- The Economic Commission for Latin America and the Caribbean said the region will remain on a low growth path in 2026 and warned that the main drivers of economic activity in recent years, private consumption and external demand, are expected to lose momentum.
According to the agency's latest projections, regional gross domestic product would grow 2.4% in 2025 and 2.3% in 2026. If confirmed, Latin America and the Caribbean would post four consecutive years of weak growth, with an average annual expansion of just 2.3%.
In a recent report, the United Nations regional commission, known by its Spanish acronym, ECLAC, said private consumption is expected to weaken in 2026. In recent years, consumption accounted for more than half of regional GDP growth, but its contribution is projected to decline amid softer external demand and slower job growth.
The report points to divergent trends across subregions. In South America, ECLAC forecasts growth of 2.9% in 2025, driven by recoveries in Argentina, Bolivia and Ecuador after contractions in 2024. In 2026, growth is expected to slow to 2.4% as most South American economies lose momentum.
Related
