Despite volatile global conditions, Latin America and the Caribbean have managed to stay on a steady growth path. Speaking at the International Monetary Fund (IMF) 2025 Annual Meeting, Rodrigo Valdés, IMF’s Director of the Western Hemisphere Department, outlined a picture of resilience supported by easing external pressures but tempered by fiscal and structural challenges that could weigh on the outlook.

“Growth in Latin America and the Caribbean has experienced no major disruptions in the first half of this year, and it's projected to remain steady at 2.4% in this year, 2025, and moderate very slightly next year. Although risks are clearly to the downside. Despite the uncertainty, global conditions have been broadly supportive for the region. Commodity prices, for example, have stabilized after a brief period of volatility, in the first part of the year. Financial conditions have eased, amid declining sovereign spreads and a weak, U.S. dollar in comparison to last year. Importantly, regional exports have kept pace with global trends of [inaudible] firm trade. Domestically, labor markets remain robust, generally supporting private consumption in most economies. Also, low exposure of many economies to the U.S., lower tariffs for the region in comparison to other regions, also have provided some buffers,” explained Valdés.