UN agency forecasts subdued economic growth for Latin America through 2026

By Fabian Cambero

SANTIAGO, Dec 16 (Reuters) - Latin America and the Caribbean's economy likely grew 2.4% in 2025 and is expected to grow 2.3% in 2026, amid weak domestic demand and global uncertainty, the U.N.'s Economic Commission for Latin America and the Caribbean (ECLAC) said on Tuesday.

• ECLAC maintained its overall regional growth projections for both years but adjusted forecasts for individual countries.

• Mexico's gross domestic product forecast for 2025 was cut to 0.4% growth from 0.6% due to weakened domestic demand, lower remittances and falling private consumption and investment.

• Brazil's GDP growth projection for 2025 held at 2.5% and Argentina at 4.3%, while Colombia was raised to 2.6%, Chile cut to 2.5% and Peru held at 3.2%.

• Labor markets are recovering slowly with moderate employment growth, persistent gender gaps in participation and unemployment and high informality restricting consumption, ECLAC said.

• The agency said the 2026 outlook indicates the region will continue on a path of low dynamism with moderate growth rates, a fragile international environment and persistent internal constraints on investment, productivity and formal employment expansion.