Latin America and the Caribbean's economy will grow 2.2% in 2026, unchanged from ECLAC's earlier forecast, before picking up to 2.5% in 2027, as high informality and weak investment continue to cripple the region's growth potential, the UN body says.
Six years after its first barrel, Guyana has the fastest-growing income per head in the world - and has overtaken the United States on the measure.
Latin American economies face renewed inflationary pressure and possible delays to interest rate cuts if a strong El Niño weather pattern disrupts food production, electricity generation and infrastructure this year, Swiss bank UBS said in a note.
The war between the US, Israel and Iran will continue to weigh on Latin American and Caribbean economies for the rest of 2026, even if last month's fragile ceasefire holds, the UN's regional economic body has warned.
The International Monetary Fund has cut its forecast for global economic growth in 2026 to 3%, citing the fallout from the war in the Middle East, while projecting that Latin America and the Caribbean would grow 2.4% this year and 2.7% in 2027.
The World Bank has trimmed its growth forecasts for Latin America and the Caribbean for both 2026 and 2027, blaming the inflationary and monetary fallout from the Middle East conflict.