March 2025: Key Developments Across Latin America

March 2025 was a dynamic month for Latin America, with each country facing pivotal events shaping their political, social, and economic landscapes. From environmental crises and judicial reforms to international diplomacy and digital transformation, governments and citizens across the region navigated challenges and opportunities alike.

In Mexico, optimism surged with the country’s ranking as one of the happiest in the world, while the government took steps to address human rights issues and animal welfare. Argentina dealt with severe floods, social unrest, and regulatory scrutiny. Uruguay welcomed a new president and celebrated trade digitalization advances. Colombia saw inflation rise, boosted its trade facilitation efforts, and reaped major economic benefits from a World Cup qualifier. Ecuador’s president laid out re-election proposals centered on security and development. Meanwhile, Guatemala, El Salvador, and Honduras focused on foreign investment and economic integration, and Costa Rica celebrated strong export growth and reinforced its FDI strategy. Finally, Peru revised its economic outlook upward and prepared a major investment portfolio for international presentation. In Brazil, key developments ranged from climate emergencies and preparations for COP30 to judicial actions involving a former president.

Together, these updates paint a multifaceted picture of a region in motion—grappling with urgent crises while laying groundwork for long-term growth, governance, and sustainability.

MEXICO

Mexico is the third happiest country in the world, according to the Ipsos 2025 Happiness Index

Mexico was ranked the third happiest country in the world according to the Ipsos Happiness Index 2025. This study, based on surveys conducted in 30 countries, revealed that 21% of Mexicans consider themselves “very happy” and 61% “somewhat happy,” for a total of 82%. Only India (88%) and the Netherlands (86%) surpassed Mexico. Furthermore, 76% of Mexican respondents expressed optimism that their lives will improve in the next five years. Factors such as family relationships and feeling valued were identified as key to this high perception of happiness. In Mexico, intergenerational families and households with four or five members were highlighted as factors that foster high levels of life satisfaction. These family structures provide emotional and practical support, contributing to high overall well-being. 

In the World Happiness Report, compiled by the UN and other institutions, Mexico rose to tenth place globally from 25th the previous year. This report assesses quality of life based on variables such as social support, healthy life expectancy, and freedom to make decisions.

• Family and community: 45% of Mexicans identified family as the main factor in happiness.
• Interpersonal relationships: Feeling appreciated was important to 34%.
• Mental health: 32% highlighted its importance.
• Economy and employment: Although less valued (23%), employment significantly influences happiness.

Mexican President announced measures to address the crisis of disappearances in the country 

Mexican President Claudia Sheinbaum announced a package of six immediate measures to address the crisis of disappearances in the country, aiming to strengthen government efforts and guarantee truth and justice for victims and their families. These actions include strengthening the National Search Commission, equating the crime of disappearance with kidnapping, creating a single national database of forensic information, and implementing immediate search alerts without waiting 72 hours. 

Additionally, reforms will be sent to Congress to consolidate the Single Population Registration Certificate as the sole source of identity, and a national platform for human identification will be established. Sheinbaum emphasized that her government prioritizes coordination with all three levels of government to prevent impunity and guarantee comprehensive care for those affected, recognizing the seriousness of this problem that has affected thousands of families in Mexico.

Mexico City Congress approves non-violent bullfighting

In March 2025, the Mexico City Congress approved a historic reform transforming bullfighting into violence-free spectacles. With 61 votes in favor and one against, the killing and mistreatment of bulls was prohibited, eliminating the use of sharp objects such as banderillas and swords. The bulls will be returned to their ranches after the event, and performance time is limited to ten minutes per bull. This decision has generated mixed reactions: while animal rights advocates celebrate the change, the bullfighting community criticizes it for altering tradition and fears that the essence of the spectacle will be lost. 

Furthermore, the reform faces technical and economic challenges, such as the impact on jobs related to the bullfighting industry, as sectors such as transportation and crafts could be affected. Despite these challenges, authorities seek a balance between animal welfare and cultural preservation, intending to implement the change gradually to minimize the economic impact on those who depend on this activity. Mexico City Congress approves non-violent bullfighting

ARGENTINA

In March 2025, Argentina experienced several significant events that captured national and international attention.

Severe Flooding in Bahía Blanca

At the beginning of March, the city of Bahía Blanca suffered catastrophic flooding due to unprecedented rainfall that accumulated approximately 260 millimeters in just a few hours. This disaster resulted in the deaths of at least 16 people, including two young girls aged one and five, and caused infrastructure damage estimated at $400 million. The severity of the situation led President Javier Milei to declare three days of national mourning and allocate 10 billion pesos ($9.2 million) in financial aid to assist the affected residents.

Pensioners’ March and Government Response

On March 12, thousands of pensioners, accompanied by unions, social organizations, and left-wing parties, gathered in front of the National Congress in Buenos Aires to protest against pension cuts implemented by Javier Milei’s government. The demonstration, aimed at demanding pension improvements and the restoration of benefits, ended in violent clashes when security forces repressed protesters with tear gas and rubber bullets. This operation resulted in more than 120 arrests and at least 45 injuries, including photojournalist Pablo Grillo, who suffered a skull fracture from a tear gas canister impact and underwent emergency surgery. Security Minister Patricia Bullrich justified the police action and announced that detainees could face up to 20 years in prison under a new anti-mafia law. These measures sparked widespread condemnation and increased political tensions in the country, reflected in pot-banging protests in various Buenos Aires neighborhoods.

Suspension of Telefónica’s Acquisition by Telecom Argentina

In mid-March, the Argentine government suspended Telecom Argentina’s planned $1.245 billion acquisition of Telefónica’s local operations. The decision, based on recommendations from the National Commission for the Defense of Competition, cited concerns over potential excessive market concentration, with projections indicating that the merger could lead to up to 80% market share in certain sectors. Telecom Argentina expressed its intention to cooperate with authorities and continue its investments in 5G and fiber optic networks.

URUGUAY

Yamandú Orsi’s Inauguration as President of Uruguay

On March 1, Yamandú Orsi was sworn in as the President of Uruguay, marking a shift toward center-left politics in the country. Backed by former President José “Pepe” Mujica, Orsi emphasized in his inaugural speech the importance of balancing social welfare with economic growth under a “modern left” agenda. His main objectives include addressing the high cost of living, inequality, and violent crime while focusing on attracting investors without raising taxes. The ceremony saw significant international attendance, reflecting the regional importance of this political transition.

Advancements in Trade Digitalization

Throughout 2024, Uruguay made significant progress in digitalizing its foreign trade processes through the Single Window for Foreign Trade (VUCE). This platform streamlined import, export, and transit operations, resulting in total savings of $157 million—$114 million for the private sector and $43 million for the public sector. More than 653,000 operations were digitalized, reducing costs associated with in-person paperwork and cutting processing times.

Beyond economic benefits, digitalization had a positive environmental impact by eliminating the use of over 91 million sheets of paper, preserving approximately 10,000 trees, and saving 27 million liters of water. Interoperability with countries such as Colombia, Chile, and Mexico improved efficiency in international trade, particularly through the use of digital certificates of origin and sanitary certifications. These initiatives reflect Uruguay’s commitment to modernization and sustainability in its economic policies.

COLOMBIA

Inflation in Colombia changes trend: rises to 5.28% in February

This rise in inflation in Colombia marks a change in trend after two years of decline. The increase in the CPI to 5.28% in February not only moves away from the target set by the Bank of the Republic (3%), but also puts pressure on its board of directors, especially in a context of changes in its composition. With the arrival of two co-directors appointed by President Gustavo Petro, the discussion on reducing interest rates becomes even more relevant. Petro has insisted on the need to lower these rates to boost economic growth, but the Bank of the Republic faces the challenge of balancing this request with its mandate to control inflation.

Colombia ranks sixth in the Americas in policies to facilitate international trade

Colombia ranked sixth among the countries of the Americas with the best performance in the Trade Facilitation Indicators (TFIs), according to the latest OECD report, which evaluated 136 economies. These indicators, aligned with the WTO Trade Facilitation Agreement (TFA), analyse 11 key areas, such as governance, cooperation between border agencies, automation and access to information, reflecting the country’s progress in optimising its customs procedures and foreign trade.

The Colombia-Paraguay match generated an impact of more than $36 billion

The Colombia-Paraguay World Cup qualifier match was not only a key sporting event, but also generated an economic impact of more than $36 billion for Barranquilla, boosted by the arrival of 25,000 visitors. This flow benefited sectors such as transport (29%), accommodation (26%), commerce (22%), food and beverages (14%) and entertainment (10%), consolidating the city as an epicentre for major events that boost its economy and strengthen its position on the national agenda.

ECUADOR

5 key proposals from Daniel Noboa to be elected president of Ecuador

The president of Ecuador, Daniel Noboa, is seeking re-election in 2025 with a government plan focused on security, the energy crisis, economic development, infrastructure and the fight against corruption. On security, he proposes to continue with the ‘Phoenix Plan’ to combat organised crime, although without detailing concrete measures. To address the energy crisis, he proposes diversifying energy sources with private and public investment. In the economy, he is committed to industrial development and the expansion of social programmes, without specifying their financing. He also prioritises investment in road infrastructure and access to decent housing. In the fight against corruption, he promises to strengthen oversight mechanisms and guarantee access to information.

Guatemala

Guatemala highlights investment opportunities at the India-Latin America and Caribbean Conclave.

Guatemala consolidated its international positioning as an attractive destination for Foreign Direct Investment (FDI), by actively participating in the India-Latin America and the Caribbean Conclave, held in New Delhi. The Deputy Minister of Foreign Affairs, Julio Orozco, presented the country’s competitive advantages to Indian business leaders, highlighting its strategic location, macroeconomic stability and preferential access to global markets, and underscored the active role of Indian companies already established in Guatemala, which contribute to the development of key sectors such as technology, manufacturing and renewable energy. The strategic message was clear: Guatemala is a reliable partner for long-term investments, with an environment conducive to sustainable business.

This participation is part of the commercial diplomacy agenda of the Ministry of Foreign Affairs, focused on diversifying markets, fostering strategic alliances and attracting investments that drive economic growth and generate opportunities for the Guatemalan population.

El Salvador

Development bank authorizes $500 million for El Salvador after agreement with IMF

The Inter-American Development Bank (IDB) approved a $500 million loan for El Salvador to support the national budget and advance in structural reforms agreed with the International Monetary Fund (IMF). This financing is aimed at strengthening tax collection, reducing public debt, rebuilding international reserves, and improving the country’s financial governance.

These actions contribute to consolidating macroeconomic stability and creating a more favorable environment for foreign investment, generating greater confidence among international investors.

Honduras:

Honduras and El Salvador agree on strategies to strengthen economic integration

Honduras and El Salvador held a binational technical meeting with the objective of strengthening regional economic integration and attracting foreign investment. The meeting was attended by Jorge Miguel Kattán, Secretary of Trade and Investment of El Salvador, and Miguel Medina, Minister of Investment and Executive Secretary of the National Investment Council (CNI) of Honduras. 

During the meeting, it was agreed to move forward with the creation of a Binational Potentialities Presentation, aimed at promoting investments in strategic sectors such as agribusiness, tourism, infrastructure, manufacturing and energy. In addition, the importance of integrating key infrastructure, including the Dry Canal, the Port of La Unión and Puerto Cortés, as well as the modernization of border crossings, was highlighted in order to improve bilateral trade and strengthen regional logistics. This binational collaboration reflects the commitment of both countries to consolidate a joint platform that facilitates the attraction of investment and promotes sustainable development in the region.

Lear Corporation expands operations in Honduras, strengthens employment and industrial investment

The multinational Lear Corporation, a global leader in automotive solutions, announced the expansion of its investment in Honduras, with the opening of a new plant that will generate 400 direct jobs. The initiative was supported by the National Investment Council (CNI) and is part of the national strategy to attract FDI. This project not only reinforces the country’s position as a manufacturing hub in the region, but also promotes the creation of formal employment and the strengthening of industrial value chains. Honduras continues to consolidate its position as a reliable destination for companies in the automotive and global manufacturing sectors.

Costa Rica

Costa Rica’s goods trade grew by 10% in the first two months of the year

According to data from Costa Rica’s Foreign Trade Promotion Agency (PROCOMER), the country’s goods exports saw double-digit growth during the first two months of the year. Their total value in dollars increased by over 10% compared to the same period last year (US$2.964 billion), reaching US$3.257 billion.

This strong performance is largely driven by the country’s leading export sector: precision and medical devices, which grew at a remarkable rate of 26% (+US$311 million). The main destinations for these exports were the United States (66%), the Netherlands (14%), and Belgium (7%). This sector, currently home to more than 95 multinational companies, accounted for 46% of total exports as of February this year.

Costa Rica strengthens its supplier network to attract high-value foreign investment

With the goal of sharing data, trends, and insights with companies in the foreign direct investment (FDI) ecosystem, the Costa Rican Foreign Trade Promoter (PROCOMER) brought together more than 70 companies from its FDI Supplier Catalog at the event “Horizon 2025: Key Factors for Foreign Direct Investment.”

This network plays a crucial role in strengthening the investment ecosystem by fostering strategic connections and enabling local businesses to integrate into global value chains.

The event brought together companies specializing in corporate services and business consulting, including legal, tax, environmental, human resources, and mergers and acquisitions advisors. It also featured firms from the infrastructure and real estate development sectors, such as construction, architecture and design firms, industrial and commercial real estate companies, free trade zone parks, and tourism infrastructure. Additionally, banks, public relations firms, and event agencies participated, further enriching Costa Rica’s FDI ecosystem.

Peru

BCR estimates that the economy will grow by 3.2% this year

The Central Reserve Bank of Peru (BCR) raised its economic growth projection for this year from 3% to 3.2%, according to its recent Inflation Report. According to the president of the BCR’s board of directors, Julio Velarde, the upward correction in the BCR’s projection is due to a better forecast for private consumption (3.1%) and public investment (6.5%). 

This figure, like those of BBVA Research and the IPE, is far from the 4% expected by the Ministry of Economy and Finance (MEF) this year. Meanwhile, according to the BCR, the non-primary Gross Domestic Product (GDP) is expected to grow by 3.3% this year.

Peru to present a portfolio of projects worth millions of dollars to Europe

The Peruvian government will present a portfolio of investment projects totalling 50 billion dollars in Europe, announced the head of the Ministry of Economy and Finance (MEF), José Salardi.

‘As a country, we will bring a portfolio of nearly 50 billion dollars in projects for the coming years,’ he said. During the ceremony to sign the concession contract for the El Algarrobo hydro-mining project, José Salardi emphasised that the government is working on various projects to reduce Peru’s infrastructure deficit.

Minister Salardi highlighted that the execution of the El Algarrobo project (Tambo Grande, Piura), whose investment amounts to 2,753 million dollars, represents a turning point for new mining investment that can be developed, especially in works and actions for the preservation of water.

Brazil

Floods and State of Emergency in Rio Grande do Sul

The southern state of Rio Grande do Sul was hit by severe rainfall, causing widespread flooding, power outages, and displacements. In 2023 alone, the state accounted for 40% of all emergency declarations in Brazil related to heavy rain—highlighting a growing vulnerability to extreme weather events.

Countdown to COP30

Ambassador André Corrêa do Lago, who chairs COP30, issued a letter calling on countries, civil society, and the private sector to join a “global task force” to fight climate change. The upcoming UN Climate Conference, scheduled for November in Belém (Pará), aims to strengthen multilateral cooperation and boost climate finance after disappointing outcomes at COP29 in Baku.

Brazil’s Supreme Court Reviews Charges Against Bolsonaro

The Supreme Federal Court began reviewing charges against former president Jair Bolsonaro and seven others accused of plotting a coup in 2022. The charges filed by Brazil’s Attorney General include violent acts against the democratic rule of law and leading an armed criminal organization.