April 28, 2025
Amid growing global economic volatility, countries in Latin America and the Caribbean must adapt their economic strategies to navigate increasing uncertainties, according to the advance chapter of the World Bank’s Latin America and the Caribbean Economic Review (LACER).
The report forecasts growth of 2.1 percent in 2025 and 2.4 percent in 2026, making it the slowest-growing region worldwide. Low investment, high debt, and a shifting external environment are major barriers to the region’s development.
“The global economic landscape has changed dramatically, marked by higher levels of uncertainty,” said Carlos Felipe Jaramillo, vice president for Latin America and the Caribbean at the World Bank. “Countries must recalibrate their strategies and advance bold and practical reforms that boost productivity and competitiveness, while tackling long-standing gaps in infrastructure, education, trade, and governance to ensure job creation and better opportunities for businesses and citizens.”
Despite some progress in controlling inflation, fiscal deficits remain a pressing concern, with the debt-to-GDP ratio expected to reach 63.3 percent in 2024, up from 59.4 percent in 2019.
The fast-evolving global economic environment adds further pressure, as persistent inflation in advanced economies may delay interest rate cuts and limit monetary policy options. Concerns around global trade restrictions create uncertainty around nearshoring and market access, contributing to a more cautious economic and business environment. Slowing growth in China and cuts in overseas development assistance also contribute to the outlook.
Source: (Caribbean News Global)
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
