IMF Cuts Latin America Growth Forecasts
The IMF lowered growth forecasts for Latin America and the Caribbean due to energy shocks from the Middle East war and limited artificial intelligence gains. Regional growth is projected at 2.3% this year, with Argentina facing the deepest output cuts.
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The IMF cut Latin America and the Caribbean's growth forecast to 2.3% for this year, down from 2.5% in 2025, due to an energy shock and minimal artificial intelligence gains. The downgrades arrive as the Fund raised its global growth projection to 3.1% from 3.0%, buoyed by rerouted energy supplies elsewhere. Regional investors face mounting headwinds as persistent inflation and higher borrowing costs squeeze domestic activity across emerging markets.
