Latin America Leads 2025 Equity Gains While India Maintains Top 10-Year Performance
In 2025, Latin American equities, led by Mexico and Brazil, outperformed global markets with significant gains driven by strong consumer sectors, relative insulation from trade tensions, and attractive valuations. Despite economic growth forecasts slowing in the region’s second half, Latin America presents compelling long-term investment opportunities amid a shifting global trade landscape. Meanwhile, India continues to show robust 10-year equity performance.
Latin America has been a standout region for equity performance in 2025, with markets like Mexico and Brazil delivering strong returns that have outpaced broader emerging markets and global equities. The region benefited from discounted equity and currency valuations, limited exposure to US-China trade tensions, and a rebound from prior market declines. Mexico’s stock market, with its domestic orientation and defensive sectors, showed durability despite tariff uncertainties, while Brazil’s consumer-driven economy contributed to positive returns. Key drivers include rising consumer spending, infrastructure investments, and a shift from commodity dominance to diversified sectors such as telecommunications and financials. However, economic growth in Latin America is expected to slow in the latter half of 2025 due to restrictive monetary policies, weak external demand from major economies, and tariff-related uncertainties. Challenges also include fiscal constraints and demographic shifts that may impact future consumption and social spending. Despite these headwinds, Latin America remains attractive for strategic long-term investors due to its valuation discounts, improving macroeconomic fundamentals, and growing domestic markets. Globally, India maintains its position among the top performers over the past decade, complementing Latin America’s standout 2025 equity gains with sustained long-term growth. The evolving trade environment and geopolitical factors underscore the importance of regional adaptability and resilience for investors eyeing emerging markets in the coming years.
