Venezuela, Paraguay, and Argentina are projected to post the highest growth rates in South America in 2025, according to new projections from the Economic Commission for Latin America and the Caribbean (ECLAC).

In a report released on Thursday, October 23, ECLAC estimates that Venezuela (6%), Paraguay (4.5%), and Argentina (4.3%) will see the strongest growth on the continent. Brazil, the region's largest economy, is forecast to grow 2.5% in 2025, the same rate as Colombia. Meanwhile, Chile's GDP is expected to expand by 2.6%.

Ecuador's economy is projected to grow 3% this year and Peru's by 3.2%. Uruguay's GDP, however, is anticipated to expand by just 2.3%, with Bolivia's growing a modest 1% in 2025.

For Latin America and the Caribbean as a whole, Guyana is expected to have the strongest performance in both 2025 and 2026, with projected growth of 12.1% and 24%, respectively. Other economies anticipated to perform well this year include Panama (4.1%), Costa Rica (3.8%), Guatemala (3.7%), Honduras (3.7%), and the Dominican Republic (3.4%). Mexico, the second most important economy in the region, is projected to grow by just 0.6% this year.

ECLAC revised its growth projection for the region upward, from the 2.2% forecast in August to 2.4% in the new report. For the following year, it still expects the regional economy to expand by 2.3%. According to ECLAC, if this estimate holds, it would mark four consecutive years of the region growing at rates of around 2.3%.

The commission indicated that this upward revision reflects a less adverse international environment than previously anticipated. However, it cautioned that the region remains mired in a low-growth trap, with average rates around 2%, framed by low investment, weak productivity, and high levels of inequality. ECLAC also noted that downside risks remain, including "the possibility of abrupt corrections in international financial markets, pressures on fiscal sustainability in advanced economies, and potential additional trade disruptions."

Other Institutional Projections

These ECLAC figures follow recent adjustments by other major international institutions. The International Monetary Fund (IMF) recently estimated growth for Latin America and the Caribbean at 2.4% in 2025 and 2.3% in 2026, a slight improvement from its July report. Similarly, the World Bank also revised its growth projections for the region upward to 2.3% in 2025 and 2.5% in 2026, while noting that this pace would still be the slowest among the world's regions.