Here’s the translation into American English:
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Latin America and the Caribbean will face a period of low growth during the current year, a phenomenon expected to extend until 2025. The Economic Commission for Latin America and the Caribbean (ECLAC) has announced that projections indicate an increase of only 2.2% for next year and 2.3% for 2026. This stagnation is attributed to weak domestic demand and an unfavorable international environment, in a scenario marked by macroeconomic uncertainty.
In its annual report, ECLAC emphasized that the regional economic outlook is conditioned by a series of global risks that concern Latin American economies. These risks include geopolitical tensions, restrictive financial conditions, and the slowdown of international trade, which intensify the region’s vulnerability.
Additionally, there has been an increase in reliance on external capital, evidenced by a current account deficit. It is estimated that the balance of payments will face difficulties during the 2025-2026 biennium, affected by international conflicts and volatility in commodity prices.
In terms of employment, ECLAC estimates that growth will be lower, forecasting an unemployment rate of 5.6%. While inflation is expected to remain at stable levels, there are latent risks that could lead to price increases.
Projections vary by subregion. South America is expected to grow by 2.7% in 2025, driven by economic recovery in countries like Argentina and Ecuador, although others may experience a slowdown. For 2026, growth is estimated to moderate to 2.4%.
Central America and Mexico will face growth of only 1.0%, nearly half of the 1.8% recorded in 2024, due to weakened external demand, particularly from the United States. However, some countries like Guatemala, Panama, and the Dominican Republic could exceed a growth rate of 3.5%, thanks to the strength of their service sectors and remittances. For 2026, a slight improvement to 1.7% is anticipated.
In the Caribbean, growth is expected to be 1.8% for 2025 and 1.7% for 2026, influenced by declining demand in the tourism sector and high import costs. Despite this trend, Guyana may stand out with elevated growth thanks to investments in hydrocarbons.
via: MiMub in Spanish
