IMF Maintains Latin America’s Growth Forecast for 2025 at 2.5%

• In its quarterly World Economic Prospects report, published on Friday, January 17^th, the International Monetary Fund (IMF) kept its growth forecast for the Latin American economy for 2025 stable at 2.5%.
• Among the largest countries in the region, the IMF maintains Brazil’s growth forecast of 2.2%, raises Mexico’s growth forecast by one-tenth (1.4%), and expects a strong rebound in the Argentine economy (5.0%) after the 2024 recession.
• According to new IMF calculations, Brazil’s economy will slow down after recording robust growth of 3.7% in 2024. The calculations revise the forecast released last October by seven-tenths of a percentage point.
• IMF sources acknowledged that the Fund’s main concern regarding the Latin American economy is the inflationary pressure in Brazil – which led the Central Bank to raise interest rates to 12.25%.
• Additionally, the IMF report raised Mexico’s economic growth forecasts for 2025 by one-tenth to 1.4% and kept 2% unchanged for 2026. However, the IMF indicated that “economic activity is moderating in Mexico, with a slowdown in private consumption and investment, and a decrease in employment growth.”
• However, from 2025, the IMF forecasts a significant rebound, with growth of 5.0% that would also be maintained in 2026, representing an upward revision of three-tenths for next year.

(Sources: IMF & Dominican Today)