Latin America faces a complex landscape in 2025, marked by shifting international trade dynamics, persistent security concerns, and increasing engagement with China. Organized crime and drug trafficking continue to challenge the region's stability, while economic vulnerabilities and democratic strains add to the pressure.
Security Concerns
Organized crime remains a critical issue, with criminal groups outpacing national responses. Drug cartels are gaining strength, exceeding national agencies in weaponry and intelligence, leading to increased insecurity and corruption. A regional security force has been proposed to combat the escalating violence, as traditional support from the U.S. diminishes.
Trade and Economic Shifts
As of May 2025, China's role in Latin America is growing, presenting both opportunities and risks. China is now Latin America's second-largest trading partner. A significant milestone is the 20th anniversary of the first free trade agreement between China and a Latin American nation (Chile) in 2025. While trade with China offers economic benefits, some analysts are concerned about the region's increasing reliance on China and the potential impact on autonomy.
Poverty and Inequality
Extreme poverty, inequality, and unemployment continue to contribute to violence and mass migrations. Slow economic growth is making poverty reduction increasingly difficult, with urban households particularly at risk from economic disruptions. A new Multidimensional Poverty Index for Latin America was presented in April 2025 by ECLAC and UNDP, incorporating factors beyond income to measure well-being.