IMF cuts GDP growth projection for Latin America and the Caribbean

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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