The Economic Commission for Latin America and the Caribbean (ECLAC) is projecting regional economic growth of 2.2 per cent this year increasing slightly to 2.5 per cent in 2027 urging that increasing productivity and growth is necessary for reducing informality through productive formalization strategies.
ECLAC has presented the latest edition of its annual report titled ‘economic Survey of Latin America and the Caribbean 2026. Growth and productivity amid high informality; constraints and challenges in fostering productive formalization in the region’.
The report indicates that the regional economy is expected to grow by 2.2 per cent in 2026, after a 2.4 per cent expansion in 2025, and show a partial recovery of up to 2.5 per cent in 2027.
ECLAC said that if these projections prove correct, Latin America and the Caribbean will have maintained five years with average growth near 2.3 per cent, an insufficient level to provide a sustained increase in income per inhabitant, close development gaps, and significantly expand policy spaces.