South America’s economy is set to expand by 2.7% in 2025, supported by robust performances in Argentina, Ecuador, Colombia, and Paraguay, according to new projections from the Economic Commission for Latin America and the Caribbean. Bolivia and Ecuador are projected to post 1.5% growth each, while Mexico is expected to expand only 0.3%, reflecting its heavy exposure to slowing U.S. demand. The Caribbean region, excluding Guyana, is projected to grow 1.8%. Sign up for our Nearshore Americas newsletter:ECLAC also noted that economic momentum across most countries will ease compared to 2024 levels, with South America’s growth seen moderating further to 2.4% in 2026. Cuba and Haiti are the only economies expected to contract in 2025, shrinking 1.5% and 2.3%, respectively.