Latin America has lived through a long economic odyssey marked by cycles of boom and bust, with recurring promises of transformation that have not kept pace with the progress the region needs.

Latin America is stuck in what the United Nations' Economic Commission for Latin America and the Caribbean, known as ECLAC, calls a "low-growth-capacity trap."

Renewed volatility in energy and commodity markets is again exposing a divide within Latin America. Exporters may receive a temporary lift from higher prices, while import-dependent economies face greater pressure on inflation and public finances.

Latin America has spent decades trapped in a cycle of disappointing economic growth that contrasts sharply with its enormous potential. The World Bank projects the regional economy will expand by only 2.1% in 2026, the lowest rate among global regions.

Latin America has long lived with a frustrating paradox. The region has abundant natural resources and a young population. Its economies, however, have grown at disappointing rates for decades.