Latin American Economic Outlook 2026

Reader’s guide

The statistical tables follow key areas identified in the Latin American Economic Outlook (LEO): i) social development; ii) productivity, innovation and international integration; iii) investment and private financing; iv) citizens’ perceptions and institutions; v) digital and green transition; and vi) fiscal position.

The Latin America and the Caribbean (LAC) average is a simple average of the largest set of LAC countries for which latest data were available as of July 2026.

The Organisation for Economic Co‑operation and Development (OECD) average is a simple average of the largest set of all OECD Member countries for which latest data were available as of July 2026.

To ensure comparability between years, countries for which data are not available for both years of comparison have been excluded from the averages. Exceptions to this are mentioned in the notes.

Applying the same criteria as in previous LEO editions, data selection from international sources prioritise comparability across LAC countries and show the latest comparable data available at the report’s publication date. For this reason, discrepancies with national data may occur.

Social development

Extreme poverty1 refers to the share (percentage) of the population whose average per capita income is below the extreme poverty line, as specified by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). Method of computation: “n” is defined as the total number of persons, and “i” is the number of people whose per capita income is below the extreme poverty line; the percentage of people living in extreme poverty is expressed as I=(i/n)x100 (known as “headcount index”). The average per capita income is calculated by dividing the total income of each household by the number of people forming it. Data from CEPALSTAT: Statistical Data Portal and Publications, https://statistics.cepal.org/portal/cepalstat/.

Poverty¹ refers to the share (percentage) of the population whose average per capita income is below the poverty line, as specified by ECLAC. Method of computation: “n” is the total number of people, and “p” is the number of people whose per capita income is below the poverty line; the percentage of people living in poverty is expressed as P=(p/n)x100. This indicator includes people under the extreme poverty line, by definition. The average per capita income is calculated by dividing the total income of each household by the number of people forming it. Data from CEPALSTAT: Statistical Data Portal and Publications, https://statistics.cepal.org/portal/cepalstat/.

Gini index2 measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Gini index of zero represents perfect equality; an index of 100 represents perfect inequality. Data from World Bank Open Data, https://data.worldbank.org/indicator/SI.POV.GINI.

Share of total population in informal households3 provides the distribution of the total population living in informal households. An informal household has all its workers in informal work. Data from OECD, Key Indicators of Informality based on Individuals and their Households (KIIbIH) (dataset), www.oecd.org/dev/key-indicators-informality-individuals-household-kiibih.htm.

Share of total population in mixed households provides the distribution of the total population living in mixed households. A mixed household has both formal and informal workers. Data from OECD, Key Indicators of Informality based on Individuals and their Households (KIIbIH) (dataset), www.oecd.org/dev/key-indicators-informality-individuals-household-kiibih.htm.

Social Institutions and Gender Index (SIGI) measures discrimination against women in social institutions (e.g. formal and informal laws, social norms and practices). Lower values indicate lower levels of discrimination in social institutions: the SIGI ranges from 0% for no discrimination to 100% for very high discrimination. Data from OECD Data Explorer, https://stats.oecd.org/Index.aspx?DataSetCode=SIGI2023.

PISA score in science4 indicates the mean score in science performance as measured by the Programme for International Student Assessment (PISA) for each country. Scientific performance measures the scientific literacy of a 15‑year‑old in the use of scientific knowledge to identify questions, acquire new knowledge, explain scientific phenomena, and draw evidence‑based conclusions about science‑related issues. Data from Science performance (indicator), https://data.oecd.org/pisa/science-performance-pisa.htm#indicator-chart.

Productivity, innovation and international integration

Trade openness5 measures the sum of exports and imports of goods and services as a percentage of gross domestic product (GDP). Data from World Bank Open Data, https://databank.worldbank.org/metadataglossary/world-development-indicators/series/NE.TRD.GNFS.ZS.

Export complexity measures the diversity and sophistication of a country’s exports to assess its productive capabilities. The indicator used reflects a country’s ranking on the global scale of export complexity, where 1 = most complex economy. Lower rankings suggest reliance on basic or undifferentiated exports; higher rankings indicate diversified, high-value export structures. Data from Harvard Growth Lab, The Atlas of Economic Complexity.

Labour productivity estimates measure output per person employed as a percentage of OECD output per person employed (in 2025 international dollars, converted using purchasing power parity). Data from the Conference Board, Total Economy Database, http://www.conference-board.org/data/economydatabase/total-economy-database-productivity.

High‑technology exports6 measure exports of products with high research and development intensity as a percentage of total manufactured exports. Data from World Bank Open Data, https://data.worldbank.org/indicator/TX.VAL.TECH.MF.ZS.

Patent applications per million people measure worldwide patent applications filed through the Patent Cooperation Treaty procedure or with a national patent office for exclusive rights for an invention, expressed per million people. Authors’ calculations are based on data from World Bank Open Data, https://data.worldbank.org/indicator/IP.PAT.RESD.

Research and development expenditure (R&D)7 measure capital and current expenditures as a percentage of GDP in four main sectors: business enterprise, government, higher education and private non‑profit. R&D covers basic research, applied research and experimental development. Data from World Bank Open Data, https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS.

Investment and private financing

Total investment8 measures gross fixed capital formation (GFCF) as a percentage of GDP. GFCF includes land improvements; plants, machinery and equipment purchases; and the construction of roads, railways and the like (including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings). According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data from World Bank Open Data, https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS.

Foreign direct investment net inflows as a percentage of GDP measures the net inflows of investment to acquire a lasting management interest (10% or more of voting stock) in an enterprise operating in an economy other than that of the investor as a percentage of GDP. It is the sum of equity capital, reinvestment of earnings, other long-term capital and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors and is divided by GDP. Data from World Bank Open Data, https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS.

Domestic credit to private sector by banks (percentage of GDP) measures financial resources, as a percentage of GDP, provided to the private sector by other depository corporations (deposit-taking corporations except central banks), such as through loans, purchases of nonequity securities and trade credits, and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises. Data from World Bank Open Data, https://data.worldbank.org/indicator/FD.AST.PRVT.GD.ZS.

Citizens’ perceptions and institutions

Satisfaction with educational system measures the percentage of the population satisfied with the educational system or schools in the city or area where they live. This metric responds to the question: “Are you satisfied or dissatisfied with the educational system or the schools in the city or area where you live?”. Data from Gallup Analytics, Education and families, Educational System, https://ga.gallup.com/Charts/.

Satisfaction with healthcare system measures the percentage of the population satisfied with the availability of quality healthcare in the city or area where they live. This metric responds to the question: “Are you satisfied or dissatisfied with the availability of quality healthcare in the city or area where you live?”. Data from Gallup Analytics, Health, City: Quality Healthcare https://ga.gallup.com/Charts/.

Satisfaction with standard of living measures the percentage of people satisfied with their standard of living. This metric responds to the question: “Are you satisfied or dissatisfied with your standard of living, all the things you can buy and do?”. Data from Gallup Analytics, Business and Economics, Standard of Living, https://ga.gallup.com/Charts/.

Confidence in judicial system measures the percentage of the population that expresses confidence in the judicial system and courts within their country. This metric responds to the survey question: “In this country, do you have confidence in each of the following, or not? How about the judicial system and courts?”. Data from Gallup Analytics, Law and order, Confidence in Judicial System, https://ga.gallup.com/Charts/.

Corruption Perception Index measures citizens’ perceptions of the levels of local corruption in their country, where 0 is completely corrupt and 100 is totally clean. Data from Transparency International, Corruption Perception Index, https://www.transparency.org/en/cpi/2025.

Tax morale measures the share (percentage) of the adult population who find some degree of justification in evading taxes, excluding those who believe tax evasion is not justifiable at all. Data from Latinobarómetro, Opinión Pública Latinoamericana, www.latinobarometro.org/latOnline.jsp.

Intentional homicide per 100 000 inhabitants: measures the number of unlawful deaths caused upon a person with the intent to cause death or serious injury per one hundred thousand inhabitants. Data from World Bank Open Data, https://data.worldbank.org/indicator/VC.IHR.PSRC.P5

Digital and green transition

Share of Internet users9 measures the percentage of the population who have used the Internet (from any location) in the last three months. The Internet can be used via a computer, mobile phone, personal digital assistant, games machine, digital TV, etc. Data from World Bank Open Data, https://data.worldbank.org/indicator/IT.NET.USER.ZS.

Fixed broadband subscriptions10 measure fixed subscriptions to high-speed access to the public Internet (a TCP/IP connection), at downstream speeds equal to or greater than 256 kbit/s. This includes cable modem, DSL, fibre-to-the-home/building, other fixed (wired) broadband subscriptions, satellite broadband and terrestrial fixed wireless broadband. This total is measured irrespective of the method of payment. It excludes subscriptions that have access to data communications (including the Internet) via mobile-cellular networks. It should include fixed WiMAX and any other fixed wireless technologies. It includes both residential subscriptions and subscriptions for organisations. Data from World Bank Open Data, https://data.worldbank.org/indicator/IT.NET.BBND.P2.

Environmentally related tax revenue11 measures the revenues from environmentally related taxes as a percentage of GDP. It includes taxes on greenhouse gas (GHG) emissions, fuel taxes, taxes on road use, forestry taxes and revenue from auctioned permits of emissions trading systems for GHGs. Data from OECD Data Explorer, Environmentally related tax revenue, https://stats.oecd.org/Index.aspx?DataSetCode=ERTR.

Per capita GHGs (excluding land-use changes) (t CO₂e/capita) measures the total annual emissions of six GHGs (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆) from energy, industry, waste and agriculture, adjusted to carbon dioxide equivalents and divided by the population. It excludes emissions from land-use changes and forestry due to higher uncertainties. Data from World Bank Open Data, https://data.worldbank.org/indicator/EN.GHG.ALL.PC.CE.AR5.

Renewable energy consumption measures the share of renewable energy sources within total final energy consumption, expressed as a percentage. Data from World Bank Open Data, https://data.worldbank.org/indicator/EG.FEC.RNEW.ZS.

Fiscal position

Total tax revenues12 measure total tax revenues as a percentage of GDP. Data from OECD, Revenue Statistics in Latin America and the Caribbean 2026, Revenue Statistics in Latin America and the Caribbean 2026 | OECD.

Share of VAT (value added tax)¹² measures VAT as a percentage of GDP. Data from OECD, Revenue Statistics in Latin America and the Caribbean 2026, Revenue Statistics in Latin America and the Caribbean 2026 | OECD.

Share of PIT (personal income tax)¹² measures taxes on the income, profits and capital gains of individuals as a percentage of GDP. Data from OECD, Revenue Statistics in Latin America and the Caribbean 2026, Revenue Statistics in Latin America and the Caribbean 2026 | OECD.

Share of CIT (corporate income tax)¹² measures taxes on the income, profits and capital gains of corporations as a percentage of GDP. Data from OECD, Revenue Statistics in Latin America and the Caribbean 2026, Revenue Statistics in Latin America and the Caribbean 2026 | OECD.

Public debt service measures public debt service as a percentage of tax revenue. Public debt service is calculated as general government primary lending/borrowing minus general government net lending/borrowing. Authors’ calculations are based on data from International Monetary Fund, World Economic Outlook Database https://data.imf.org/en/datasets/IMF.RES:WEO and OECD, Revenue Statistics in Latin America and the Caribbean 2026, Revenue Statistics in Latin America and the Caribbean 2026 | OECD.

Social expenditure13 measures public social spending as a percentage of GDP. The main social policy areas are old age, survivors, incapacity‑related benefits, health, family, active labour market programmes, unemployment, housing and other social policy areas. For OECD countries, data refer to  Social Expenditure from OECD Data Explorer, https://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG; for LAC countries, data refer to CEPALSTAT Statistical Data Portal and Publications, “Social public expenditure” https://statistics.cepal.org/portal/cepalstat/dashboard.html.

Notes

← 1.  Poverty and extreme poverty: all data are national-level data, except for Argentina, for which only urban-level data are available (as such, Argentina is excluded from the LAC averages). For the LAC average in 2016, data for Chile are from 2015. For the LAC average in 2024, data for Bolivia and El Salvador are from 2023. Chile is excluded from the LAC averages (latest available data are from 2022, with no observation for the recent reference year). Weighted LAC averages for poverty and extreme poverty can be consulted in Chapter 1.

← 2.  Gini index: for the OECD and LAC averages in 2016, data for Chile are from 2015. For the LAC average in 2024, data for El Salvador are from 2023; data for Costa Rica and Ecuador are from 2025. For the OECD average in 2023, data for Australia and Japan are from 2020; data for Korea, the Netherlands and the United Kingdom are from 2021; data for Canada, Germany, Israel and Switzerland are from 2022; data for Colombia, Mexico and the United States are from 2024; data for Costa Rica are from 2025.

← 3.  Informality indicators: for the averages of informality: in 2009, data for Argentina, Costa Rica, Colombia, Mexico and Peru are from 2010; data for El Salvador and Honduras are from 2014; and data for Uruguay is from 2008. For the averages in 2023, data for Chile, Guatemala, Mexico and Suriname are from 2022. Countries for which data are not available for both years of comparison have not been excluded from the averages for the indicators on the share of total population in informal households.

← 4.  PISA score in science: average for LAC and OECD Member countries is simple and not weighted.

← 5.  Trade (percentage of GDP): for the LAC average in 2025, data for Antigua and Barbuda are from 2022; data for the Bahamas, Belize, Bolivia, Cuba and Panama are from 2024. For the OECD average in 2025, data for Japan, New Zealand and the United States are from 2024.

← 6.  High-technology exports: for the LAC average in 2016; data for Belize are from 2017. For the LAC average in 2024, data for St. Lucia are from 2020; data for Cuba are from 2022; data for Dominica, Jamaica and St. Vincent and the Grenadines are from 2023.

← 7.  Research and development expenditure: for the OECD average in 2016, data for Australia, Switzerland and New Zealand are from 2017. For the OECD average in 2023, data for Colombia are from 2020; data for Chile are from 2022; data for Canada and Mexico are from 2024. For the LAC average in 2023, data for Colombia are from 2020; data for Chile, and Trinidad and Tobago, are from 2022; data for Cuba, Mexico and Panama are from 2024.

← 8.  Total investment: for the LAC average in 2025, data for Trinidad and Tobago are from 2023; data for the Bahamas, Belize, Bolivia, Cuba and Panama are from 2024. For the OECD average in 2025, data for Japan, New Zealand and the United States are from 2024.

← 9.  Share of Internet users: for the OECD and LAC averages in 2016, data for Chile are from 2015. For the LAC average in 2024, data for Suriname are from 2023. For the OECD average in 2024, data for Austria, Luxembourg, Sweden, Switzerland and Türkiye are from 2025.

← 10.  Fixed broadband subscriptions: for the LAC average in 2024, data for Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, St. Kitts and Nevis and St. Lucia are from 2022; data for Panama and Paraguay are from 2023. For the OECD average in 2024, data for Japan are from 2023.

← 11.  Environmental tax revenue: for the LAC average, data for Colombia are from 2020. For the OECD average, data for Colombia, Greece and Switzerland are from 2020.

← 12.  Tax revenues: for the OECD averages of the shares of VAT/PIT/CIT, data for Australia, Greece and Japan are from 2019 (OECD VAT/PIT/CIT averages are retained from the previous edition). No year substitutions apply to the LAC averages of total tax revenues, VAT, PIT and CIT for the reference year 2024.

← 13.  Social expenditure: for the LAC average in 2021, data for Bolivia, Cuba and Panama are from 2020. For the OECD average in 2021, data for Australia, Mexico and Türkiye are from 2019, and data for Canada, Costa Rica and Japan are from 2020.