A photo of skyscrapers representing Latin America business

Latin America Business: 2021 Growth Predictions Jump

In a highly positive sign for Latin America business and investment, the UN’s Economic Commission for Latin America and the Caribbean (ECLAC) has significantly raised its predictions for growth in the region during 2021, offering a strong indication of economic reactivation in the wake of the global pandemic.

A photo of Lima in Peru, where ECLAC's GDP growth prediction has grown significantly, in a positive sign for Latin America business
Lima, Peru, where ECLAC’s growth projection grew

According to a newly released report from ECLAC, gross domestic product (GDP) in Latin America and the Caribbean is now expected to grow 5.9% overall, having been predicted to grow 5.2% in a previous report only released in July.

That revised number is a welcome boost for Latin America business that is driven by some significant upgrades in growth predictions for individual countries in the region.

While Guyana and Panama continue to lead the regional pack, with unchanged anticipated growth rates of 16% and 12% respectively, Peru’s expected growth has risen from 9.5% to 10.6%. Meanwhile Chile’s has increased from 8% to 9.2% and the Dominican Republic has seen its prediction go from 7.1% to 8%.

SEE ALSO: Essential Guide for Company Incorporation in Chile

The most impressive increases in anticipated growth saw El Salvador and Colombia’s rates rise more than 2% each. In the case of El Salvador, it leapt from 5% to 7.5%, while Colombia’s expected GDP growth moved from 5.4% to 7.5%.

ECLAC’s revised figure follows the Salvadoran government’s own recent upgrading of its 2021 projection, however it fell short of the 9% growth predicted by El Salvador’s central bank last month.

Notably, none of the countries saw their GDP growth predictions reduced since the previous report, indicating a highly positive outlook for Latin America business.

A Biz Latin Hub graphic showing the change in ECLAC's growth predictions between July and August 2021, in  a positive sign for Latin America business
ECLAC’S growth predictions have grown in numerous countries

More positive news from the region for investors  

The improved outlook for growth in the region comes amid widespread positive indicators coming out of numerous countries recently that bode well for Latin America business.

They include a 50% increase in public investment in Peru in August and a 6.4% drop in unemployment in Bolivia during July, while in El Salvador internal production and increased industrial activity has reportedly seen job numbers return to the same level as before the global health crisis.

Meanwhile, Colombia was recently reported to be among the top three nations from the Organisation for Economic Co-operation and Development (OECD) for company formation.

In Brazil, investor confidence was recently reported to have hit an eight-year high, while Chile saw foreign direct investment (FDI) break its historic record in the first half of the year. 

Such figures have seen growing confidence among investors, with the climate Latin America business recently reported to be in its best state in more than three years.

Biz Latin Hub can assist you in Latin America and the Caribbean

At Biz Latin Hub we offer integrated back-office support to meet your market entry and ongoing operational needs in Latin America and the Caribbean. Our comprehensive understanding of Latin America business and portfolio of services, including company formation, accounting & taxation, legal support, recruitment, and visa processing, means we can offer you a tailored services agreement to suit your requirements and guarantee you success doing business in the region.

Contact us today to discuss how we can assist you in any of the 18 markets around Latin America and the Caribbean where we have local teams in place.

Or read about our team and expert authors.

Key services offered by BLH including legal services, accounting & taxation, hiring & PEO, due diligence, tax advisory, and visa processing
Key services offered by Biz Latin Hub

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Craig Dempsey

Craig Dempsey

Craig is a seasoned business professional in Latin America. He is the Managing Director and Co-Founder of the Biz Latin Hub Group that specializes in the provision market entry and back office services. Craig holds a degree in Mechanical Engineering, with honors and a Master's Degree in Project Management from the University of New South Wales. Craig is also an active board member on the Australian Colombian Business Council, and likewise also active with the Australian Latin American Business Council.

Craig is also a military veteran, having served in the Australian military on numerous overseas missions and also a former mining executive with experience in various overseas jurisdictions, including, Canada, Australia, Peru and Colombia.

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