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Latin America and Caribbean Prosperity Rating

A robust and data-driven analysis of the broad region’s progress toward greater prosperity.

Latin America and Caribbean Prosperity Rating

A robust and data-driven analysis of the broad region’s progress toward greater prosperity.

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Why a report on Latin America and the Caribbean in 2026?

In the geopolitical climate of 2026, companies building resilient, quality-focused models close to home are making a wise investment in their long-term prosperity. At the same time, Latin America is increasingly recognized as home to a significant, diverse, and influential group of “middle powers” that are reshaping global dynamics. A rating deep diving into Latin American and Caribbean economies’ strengths and weaknesses, therefore, seems apt.

The region is dealing with a paradox that has become increasingly difficult to ignore: exponential gains made in areas spanning institutions, societal concerns, and economic prowess are not translating into a better quality of life for all.

This report draws on 78 data points across 34 Latin American and Caribbean economies and groups them into four focal areas: economic challenges, governance and institutions, managerial dynamics, and societal empowerment. The result is a rich analysis that enables cross-country comparisons and delivers readers with acute details behind the different stages of development in the sub-regions that make up this vibrant and resource-rich part of the world.

Full report

Illuminated Latin American Cities Map for Digital Marketing - IMD Business School
Managerial weakness is biggest brake on prosperity in Latin America and the Caribbean
Rating finds that higher prosperity is linked to balanced outcomes in economic, institutional, managerial, and social areas.

“If China ends up shifting production chains to Latin America in a bid to mitigate the effects of US tariffs, the manufacturing opportunities will be real and substantial. But without the right conditions in place, the region risks missing the moment entirely,” said José Caballero, Senior Economist at the WCC and lead author of the report.

The index finds that poor managerial practices are preventing many economies in the wider region from taking advantage of opportunities arising from shifts in global trade and turning them into sustained improvements in economic prosperity.

Methodology

Unlike traditional approaches that rely heavily on GDP and a limited set of economic indicators, the WCC’s methodology
integrates four interconnected pillars, each representing one of the contextual factors shaping the region’s prosperity identified earlier in this report: economic challenges, governance and institutions, managerial dynamics, and societal empowerment. It mirrors the methodology used in the Africa Prosperity Rating. 

1
Economic challenges
  • Includes indicators of growth, investment, trade openness, infrastructure, labor market efficiency, and macroeconomic stability.

 

Measures an economy’s ability to achieve sustainable growth and resilience by diversifying exports, improving infrastructure, and ensuring stable employment and prices.

 

2
Measures related to governance and institutions
  • Includes indicators of public sector efficiency, fiscal management, political stability, and regulatory quality.

 

Measures a government’s ability to provide effective, transparent, and stable institutions that support competitiveness, attract investment, and build trust among citizens and businesses.

 

3
Managerial dynamics
  • Includes indicators of business efficiency, labor market performance, financial inclusion, and innovation capacity.

 

Measures how effectively managerial practices, corporate governance, and access to finance support business competitiveness, productivity, and long-term growth.

 

4
Factors favoring societal empowerment
  • Includes indicators of human capital development, social inclusion, gender equality, and quality of life.

 

Measures how effectively societies promote equal access to education, healthcare, and opportunities—ensuring that growth and prosperity are shared across all segments of the population.