Panama Growth Picks Up on Canal-Driven Trade Activity
Economic growth in Latin America and the Caribbean (LAC) is expected to hold steady at 2.3% in 2025 and 2.4% in 2026. This marks a downward revision of 0.2% from the WB January forecast, with over half the region’s economies seeing lowered expectations. Weaker global demand, rising trade barriers, and falling commodity prices are putting pressure on exports and increasing external uncertainty. This according to the World Bank Global Economic Prospects, Regional LAC Outlook, published yesterday.
Mexico being hit hard by U.S. tariffs
Brazil’s 🇧🇷 economy is set to slow from 3.4% in 2024 to 2.4% in 2025 and 2.2% in 2026, due to slower consumption and much weaker investment growth amid tighter financial conditions. Mexico’s 🇲🇽 growth is expected to drop significantly from 1.5% in 2024 to just 0.2% in 2025 and 1.1% in 2026, being hit hard by U.S. tariffs as it is for 80% reliant. on U.S. exports. Argentina 🇦🇷 is expected to rebound strongly after a prolonged recession (-1.8% in 2024), with growth forecasted at 5.5% in 2025 and 4.5% in 2026, supported by economic stabilization measures. Colombia’s 🇨🇴 outlook is improving, with growth set to rise to 2.5% in 2025 and 2.7% in 2026 (from 1.6% in 2024) as inflation eases and both consumption and investment begin to recover.
Panama: Growth Picks Up on Canal-Driven Trade Activity
Panama’s growth is projected to recover from 2.9% in 2024 to 3.5% in 2025 and 3.8% in 2026, fueled by strong demand for trade and logistics services linked to the Panama Canal. This is an upward revision of +0.5% & +0.3 % compared to the WB January forecast.
Together with Guatemala 🇬🇹, Panama 🇵🇦 is projected with the 3rd highest growth, after Argentina 🇦🇷 (5.5% in 2025; 4.5% in 2026) & Paraguay 🇵🇾 (3.7% in 2025; 3.6% in 2026).
Global Economic Prospects June 2025
Regional Outlook Latin America & Caribbean June 2025
