According to data from the Federal Statistical Office (Destatis), the German economy contracted during the second quarter of 2025, reflected in a 0.3 % drop in Gross Domestic Product.

Among the causes of this contraction are the turbulence in global trade that is affecting domestic economic dynamics, with a less favorable development of industrial production coupled with “the poor order book situation.”

“Furthermore, the worsening labor market outlook and the slowdown in wage growth also played a role, directly affecting private consumption.”

It is important to remember that the European country’s economy has been experiencing a quarterly contraction since 2023 and 2024, which is increasing pressure on Chancellor Friedrich Merz to implement measures to help reactivate the economy.

However, the Bundesbank’s projections are not encouraging, as it anticipates “a course of stagnation for the third quarter” in the face of the Trump administration’s tariffs on the European Union and the increase in public spending, which “exceeded revenues in the first half of 2025.”

M.Pino

Source: DW

(Reference image source: Toru Wa on Unsplash)

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The International Monetary Fund estimated a slowdown in GDP growth for Latin America and the Caribbean in 2025, according to the organization in its World Economic Outlook report, released last week.

This cut is primarily due to a 0.3 % contraction in Mexico’s economy due to tariffs imposed by the United States.

According to the IMF, “economic growth in Latin America and the Caribbean is expected to slow in 2025 to 2.0 % from last year’s 2.4 % expansion, compared to a January estimate of 2.5 % growth.”

The contraction of the Mexican economy is compounded by uncertainty associated with Trump’s measures and geopolitical tensions, in addition to tightening financing conditions.

Meanwhile, in the Latin American context, “growth in Brazil, the region’s largest economy, is estimated to slow to 2.0 % from a January estimate of 2.2 %.” In the case of Argentina, the growth forecast is 5.5 %; Colombia 2.4 %; Chile 2.0 %; and Peru 2.8 %.

Central America was not left out of the report, with the IMF indicating an estimated growth of 3.8 % this year, “slightly slower than the 3.9 % rate in 2024, while the Caribbean economy is expected to slow to 4.2 % in 2025 from 12.1 % last year.”

M.Pino

Source: americaeconomia

(Reference image source: path digital on Unsplash)

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In a recent report, the Central Bank announced that Brazil’s economic activity experienced a contraction of 0.06 % in September compared to the previous month, reaching its lowest point since January. The monthly index of economic activity, used to anticipate the trend of the Gross Domestic Product (GDP), indicated a growth of 1.1 % compared to the same month last year, according to seasonally adjusted data.

When analyzing the quarters, the largest Latin American economy recorded a decrease of 0.64 % between July and September compared to the previous three months.

Although the Central Bank increased its growth forecast for this year from 2 % to 2.9 % in September, attributing this adjustment to the solid performance of the agricultural sector, it warned that economic activity will weaken in the coming quarters. The projection now points to 1.8 % growth by 2024.

Although the federal government remains more optimistic, expecting economic growth above 3 % this year, especially after surprising growth in the second quarter, the long-term outlook suggests economic challenges on the horizon.

K. Tovar

Source: Bancaynegocios

(Referential image source: Raphael Nogueira, Unsplash)

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The Venezuelan economy registers a 7 % drop, after two consecutive quarters of contraction. This has been indicated by the Venezuelan Finance Observatory, OVF.

The agency has indicated this Wednesday that a new recessive cycle is appreciated “compared to the same period last year.

According to OVF analyses, during the first quarter of 2023 “the country’s economic activity contracted 7.6 % compared to the same period of the previous year, while, between April and June, it fell by 6.3 % compared to the second quarter of 2022.”

Ángel Alvarado, a member of the observatory, stressed that the national economy has been accumulating, since the end of 2021, seven quarters of decline.

Among the reasons for this persistent drop in economic growth in Venezuela, the OVF highlights the low remuneration of workers and credit restrictions that “inhibit any financing to economic sectors.”

M.Pino

Source: americaeconomia

(Reference image source: Unsplash, in collaboration with Getty Images)

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China’s Gross Domestic Product (GDP) registered a contraction of 2.6 % in the second quarter of the year compared to the previous three months, when it had grown by 1.4 %, as a result of the impact of the restrictions to contain the spread of Covid-19 and the crisis in the real estate sector, in addition to the problems of the international economy, according to data from the National Statistics Office (ONE).

This is the second worst growth figure for the world’s second largest economy, only behind the 9.8 % contraction in the first quarter of 2020. In year-on-year terms, China’s growth slowed to 0.4 % in the second quarter, compared to the expansion of 4.8 % in the first three months of 2022.

Thus, in the first half of the year, China’s GDP growth was estimated at 2.5 %, which makes it difficult to meet the 5.5 % annual expansion target set by Beijing.

“Even with a little massaging of the numbers, it’s hard to see how the government’s target of around 5.5 % growth this year can be met,” said Julia Evans-Pritchard, senior China analyst at Capital Economics.

K. Tovar

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Source: The Objective

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The International Monetary Fund (IMF) published the new estimates on economic growth for Latin America in 2021, raising them to “6.3 %, that is, half a point above its July forecast, thanks mainly to the good development of the raw material export sector.“

According to the IMF, Venezuela will register a contraction of its economy in the order of 5 %, half the figure published in its last report, last July, when it estimated the reduction in economic activity at 10 %.

However, Venezuela is not the only country that suffered variation in the new report on the Global Economic Outlook (WEO). Brazil and Mexico also “saw their forecast lowered by one tenth compared to three months ago, to 5.2 and 6.2 %, respectively.”

Positive growth

Some countries in the region will have higher growth than was estimated last July. Argentina will have a growth of 7.5 % in 2021, compared to 6.4 % reflected in July by the IMF. This country is negotiating a debt refinancing agreement with the IMF for about 45,000 million dollars, in a plan subject to policies that improve economic activity and fiscal health.

According to the IMF, Chile will be the Latin American country with the highest growth, forecasting 11 % for this year, compared to 6.2 % projected in April. These projections are a consequence of the production levels and reserves of copper and lithium of the country. On the other hand, Colombia will grow 7.6 % and Peru 10 %, while Central America as a whole will grow 7.7 %.

The report also indicates that the Caribbean economies, which depend mostly on tourism, will register a 3.6 % development, a figure higher than the 2.4 % calculated in the previous update.

M. Rodríguez

Source: primicia.com.ve

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