The high economic growth rates of the 2000s experienced in Latin America fuelled by favourable external conditions are over. Instead, the region continues to deal with a deteriorating external environment that, without experiencing any major internal crises, is leading to modest growth rates. Medium-term growth projections, however, show further downward revisions. This suggests that potential output growth is less robust than expected, which could present a risk to recent socioeconomic achievements. This chapter assesses Latin America’s growth prospects in the challenging international environment and explores how vulnerable the region is to further adverse changes in external conditions. The domestic outlook focuses on the need to stabilise and increase investment rates and productivity. The external outlook focuses on the effect of China’s “new normal” and looks at how slower growth and structural change in China is altering the Latin American landscape, as well. It then discusses how these factors influence the main real and financial indicators in the region, and will shape the external environment for decades to come. The chapter ends with shortand long-term proposals for economic policy, highlighting the diverse socio-economic landscapes in Latin American countries.