IMF Forecasts Mixed Economic Growth for Latin America & Caribbean

The International Monetary Fund revised its growth forecast for Latin America and the Caribbean, projecting a 2.1% growth rate for 2024. Brazil's economy is set to grow by 3.0%, while Mexico's is expected to rise by 1.5%. Argentina's economy will decline this year but rebound strongly in 2025.

The International Monetary Fund (IMF) has updated its projections for the Latin American and Caribbean economies, predicting a 2.1% growth rate for the year. The revision is slightly higher than the previous July forecast, particularly benefiting from changes in the region's two largest economies.

In a significant revision, Brazil's growth forecast for 2024 saw a remarkable increase from 2.1% to 3.0%. This adjustment mirrors robust private consumption and investment driven by a healthy labor market and government transfers. Meanwhile, Mexico's economy was downgraded to a 1.5% growth forecast due to weak domestic demand.

Among major economies, Argentina is set to face a contraction this year, with a staggering decline of 3.5%. However, the IMF anticipates a strong 5.0% rebound in 2025. Overall, the region is expected to maintain stable growth from last year's 2.2% rate, accelerating to 2.5% in 2025.

(With inputs from agencies.)