LAC Economies Grew 2.2% in 2024: World Bank

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The World Bank estimates that Latin America and the Caribbean (LAC) recorded economic growth of 2.2% in 2024, slightly exceeding initial expectations.

However, the outlook for 2025 suggests a modest slowdown, with GDP expansion projected at 2.5%.

Interestingly, the best performers are the Caribbean countries. Guyana led with an impressive 43% growth, while the Dominican Republic followed with 5.1%.

Among the largest economies, Brazil posted a strong 3.2% growth, whereas Mexico saw a marked deceleration to 1.7%, down from 3.3% in 2023. Argentina, despite a gradual recovery in the latter half of the year, still faced an overall economic contraction of -2.8% in 2024.

Argentina’s trade surplus rose due to lower imports. Interest rates declined across most of the region but remained high in Brazil and Mexico.

The region’s economic trajectory in 2025 will be shaped by global commodity prices, demand fluctuations, and domestic fiscal policies. While commodity exports remain a key driver, weaker demand from China could pose risks, stated the World Bank.

The Caribbean region is expected to grow by 4.9% in 2025 and 5.7% in 2026, largely driven by Guyana’s expanding oil sector. Excluding Guyana, the Caribbean’s annual growth is projected at 3.8%, supported by tourism and remittances.

The World Bank cautions that several risks could impact the region’s economic performance. These include fiscal instability, persistent core inflation, and restrictive monetary policies.

Additionally, reduced Chinese demand could affect commodity exports, particularly in Chile and Peru. Trade restrictions under the USMCA agreement may limit exports, while stricter migration policies could reduce remittances.

Climate-related concerns, especially droughts linked to La Niña, pose further threats to agriculture and infrastructure.

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LAC Economies Grew 2.2% in 2024: World Bank

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