Latin America advances toward economic equilibrium, but growth remains stagnant

 BBVA sees gradual convergence in the region's economies, although the World Bank warns that without reforms and increased productivity, equilibrium will not be enough to close social gaps.

Latin America is going through a phase of convergence that seems more like a truce than a victory. Amid global uncertainty, marked by geopolitical tensions and a cooling global economy, the region has managed to stabilize some of its imbalances, but growth momentum remains subdued.

BBVA Research's most recent report paints a picture of "gradual macroeconomic convergence": appreciating currencies, falling risk premiums, and a slight rebound in economic activity. However, this improvement comes with caveats. The region's economies remain divided between those consolidating structural progress and those that still rely on containment measures rather than transformation.

Argentina and Colombia stand out as the only major economies showing signs of acceleration compared to 2024, while Mexico and Brazil are slowing down, albeit less than expected three months ago. Overall, BBVA estimates that regional GDP will grow 2.2% in 2025, a slight respite from the years of adjustment, but still below the global average.