A new report from the Economic Commission for Latin America and the Caribbean (ECLAC) paints a mixed picture of progress and ongoing challenges across Latin America and the Caribbean, highlighting stubborn poverty levels, uneven economic growth and mounting environmental pressures.
In its 2025 Statistical Yearbook, the United Nations body reported that multidimensional poverty continues to affect 27.4 per cent of the region’s population, with significant disparities between countries. Gender inequality remains a key concern, with women between the ages of 20 and 59 more likely than men to live in poverty, particularly in urban areas.
Economic growth across the region is projected at 2.4 per cent for 2025, though performance varies widely. South America is expected to record modest gains, while Central America and Mexico show signs of slowing. Growth in the Caribbean remains uneven, driven largely by strong expansion in Guyana.
Trade activity is beginning to recover following earlier declines, but remains inconsistent across countries. ECLAC noted that intraregional trade continues to be limited, underscoring structural challenges in economic integration.
On the environmental front, the report warns that the region remains highly vulnerable to climate change. In 2024, a total of 82 natural disasters affected more than 12 million people, resulting in over 800 deaths and economic losses estimated at US$21.8 billion.
Deforestation also continues to pose a serious threat, with forest cover declining from 53 per cent in 1990 to 46 per cent in 2023. Despite this reduction, the region still accounts for approximately one-fifth of the world’s forests.
Air quality is another pressing issue, with no country in Latin America and the Caribbean meeting the standards for fine particulate matter set by the World Health Organization.
ECLAC said the findings underscore the need for stronger policy responses to address inequality, boost sustainable growth and build resilience to climate-related risks across the region.
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