The Economic Commission for Latin America and the Caribbean (ECLAC) has updated its growth estimates for the region, predicting that Latin America and the Caribbean’s gross domestic product (GDP) will show annual growth of more than 2% at least until 2026. The organization, which warns of the ongoing “low growth capacity trap,” predicts that this cycle of moderate growth will continue as part of a trend that has been ongoing for four years, according to the report accessed by the agency.
Among the report’s most notable data is that the firm expects regional GDP to increase by 2.4% in 2025 and 2.3% in 2026, a level that the firm considers insufficient to address the structural challenges facing Latin American economies. Looking at performance by sub-region, the organization expects growth in South America to increase from 2.9% in 2025 to 2.4% in 2026, influenced by the slowdown in Brazil, which responds to both the continuity of a restrictive monetary policy and a reduction in fiscal stimulus, and by the normalization of the economic cycle in Argentina after a significant recovery expected in the final days of 2025.
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Central America is forecast to see GDP growth of 3.0% in 2026, following growth of 2.6% in 2025 and 2.8% in 2024. According to ECLAC, this region is most affected by weakness in aggregate external demand, particularly from the United States. Despite this context, some countries such as Guatemala, Panama and the Dominican Republic are showing relative resilience, supported by the good performance of the services sector, the dynamics of private consumption and the growth in remittances, which suggest growth rates of around 3.5% or more.
The Commission’s update also identifies Guyana as the country with the highest expected growth in the region, with a forecast of 15.2% for 2025 and an even more significant increase to 24% in 2026. Meanwhile, Colombia would close 2025 with a 2.6% increase in its GDP, rising slightly to 2.7% in 2026, reflecting the general trend of regional moderation noted by the organization.
Despite an international environment characterized by persistent inflation and economic slowdown, Colombia managed to position itself as the fourth best performing economy in 2025 in the British magazine’s international ranking The Economist. This assessment, which included 36 Organization for Economic Co-operation and Development (OECD) member countries as well as other developed and emerging economies, highlighted Colombia as the only Latin American country represented in the top ten.
The report from The Economist He explained that Colombia achieved an annual economic growth of 3.4%, a figure above the average of the group assessed. The Colombian stock market recovered with a valuation of 43.8%, contributing to a positive perception among investors. In terms of employment, the country recorded a 3% increase, the highest among the top five places on the list, consolidating its position within the group of best-performing economies in relative terms.
The ranking methodology was based on the comparative analysis of five indicators: gross domestic product (GDP) growth, stock market behavior, employment development, underlying inflation and inflation amplitude. This quantitative approach allows nations to be ranked based on their collective performance in 2025.
In the ranking, Portugal leads the way with GDP growth of 2.4%, followed by Ireland (3.2%), Israel (3.5%) and Colombia (3.4%). Spain came fifth with 2.8%. The analysis of the above-mentioned media revealed that several countries managed to combine economic growth, price stability and labor force dynamics even in the face of external adversities.
As for underlying inflation, Colombia recorded an indicator 3.3 percentage points (PP) above the 2% target. This reflects that although prices are still above the target, a corrective trend is evident. In addition, the amplitude of inflation fell by 6.7 percentage points, indicating a more general slowdown in price growth.
According to the National Administrative Department of Statistics (Dane), Colombia’s annual inflation rate fell to 5.3% in November, while the unemployment rate was 8.2% in October. For its part, the Bank of the Republic forecasts growth of 2.6% by the end of 2025 in an environment of disinflation, aiming to move closer to the 3% target.
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