- Corporate Earnings Recovery Could Drive Growth Across Sectors. Latin American companies are set to rebound from a challenging 2024, with corporate earnings expected to grow by approximately 16% in 2025, according to JPMorgan. This broad-based recovery is anticipated across sectors like energy, industrials, financials, technology, health care, and telecommunications. Brazil and Mexico, two of the region’s largest economies, are forecasted to see strong earnings growth, underscoring the region’s resilience and potential for sustained economic expansion.
- Nearshoring Trend to Bolster Mexico’s Economy. The global shift toward nearshoring—driven by multinational companies aiming to strengthen supply chain resilience and cut costs—is expected to present significant opportunities for countries like Mexico. While President-elect Donald Trump has raised the possibility of imposing additional tariffs, many banks and investors remain optimistic about the upward trajectory of this trend. Nearshoring is expected to lead to increased foreign direct investment, creating new jobs and fostering economic growth in Mexico and other parts of the region.
- Structural Reforms and Diversification Key to Sustained Growth. With a focus on unlocking higher growth potential, Latin American nations are actively prioritizing economic diversification and structural reforms. Encouraged by the International Monetary Fund, the region is expanding its reform agenda to drive robust economic development. Emphasizing resilience and adaptability, these policies are key to fostering long-term, sustainable growth and reducing vulnerability to external shocks.
- Digital Transformation Accelerating Across the Region. Latin America’s digital economy is on a rapid growth trajectory, with projections showing market expansion over the next several years, at a strong compound annual growth rate. This digital transformation provides fertile ground for innovation, particularly in fintech, as businesses are expected to leverage technology to create new platforms and services. To meet growing local demand for faster and more efficient payment solutions, businesses are adopting advanced technologies in areas such as payment processing and remittance services. These innovations are not only driving operational efficiency but also enhancing customer experiences and unlocking new opportunities across sectors.
- Labor Reforms to Advance Gender Equality in the Workplace. Across Latin America, 2025 is expected to bring labor reforms aimed at advancing gender equality and combating workplace discrimination. Brazil’s gender pay law, Chile’s workplace harassment legislation, and Mexico’s gender-focused labor inspection protocols highlight the region’s commitment to a more equitable workforce. In Mexico, recent amendments to digital platform regulations also emphasize gender equality, with provisions to prevent violations and address gender-related issues.