Insight into Latin America
Latin America is emerging as one of the most dynamic and opportunity-rich regions in the global economy and here’s why. According to the latest report by Moody’s Analytics, the region's economy is expected to grow by 2.2% in 2025, with several countries showing strong potential. Each market brings its own advantages, creating a diverse and resilient landscape for investors, partners and companies looking to expand.
Argentina: A rebound with momentum
Argentina is set to lead the region in 2025 with a projected growth of 5.2%, the highest in Latin America. While this follows two consecutive years of contraction (-1.6% in 2023 and -1.7% in 2024), signs of recovery emerged at the end of 2024. A bold stabilization plan helped rein in inflation, paving the way for sustainable growth. Moody’s forecasts further expansion of 3.5% in both 2026 and 2027 which indicates not just a bounce-back, but real momentum.
Peru: A country powered by real resources
Peru is forecast to grow 3.1% in 2025, driven by strong mineral exports, high global metal prices, controlled inflation, and a solid labor market. These factors support robust private consumption, with growth expected to continue at 2.9% in 2026 and 3.0% in 2027.
México: National stability among challenges
Mexico's growth for 2025 is projected at a modest 0.1%, held back by trade uncertainty, reduced public spending, and declining investment. However, strong remittances and targeted social spending have maintained household income levels. While formal employment is struggling, a key signal for future investment, the fundamentals remain sound for long-term partnerships and market potential.
Uruguay and Colombia: Steady and Resilient
Uruguay is on track for 2.1% growth in 2025, reflecting a stable and predictable economic climate.
Colombia benefits from falling unemployment and high private consumption, despite ongoing inflationary pressures. These trends show a consumer market that’s active, resilient, and ready to grow.
Stronger than expected
Latin America’s first-quarter performance in 2025 exceeded expectations, with year-over-year growth hitting 3.1%, outperforming the original 2.6% forecast made in December 2024. As a result, Moody’s revised its full-year regional forecast upward, from 2.1% to 2.2%.
Why this matters for your company
Latin America isn’t just growing. It’s evolving. With a young population, rising digital adoption, and increasingly competitive sectors like fintech and infrastructure, this is a region where innovation meets opportunity Whether you're a brand, investor, or creative partner, working with Latin American companies offers access to world-class talent, strategic markets, and long-term growth.
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