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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

May 5, 2025

What’s Weighing on Latin America’s Economic Growth?

The International Monetary Fund and World Bank recently lowered their 2025 growth estimates for Latin America and the Caribbean. // Image: Anthony Brown via Adobe Stock.

Q

A

Liliana Rojas-Suarez, director of the Latin America Initiative and senior fellow at the Center for Global Development: “Latin America has been experiencing persistently low economic growth for several years. Even before the Covid-19 pandemic, multilateral organizations were forecasting the region would have the weakest growth among all developing areas. A stark contrast exists between the region’s macroeconomic stability and its lackluster growth. While there is broad support for policies aimed at controlling inflation, there is little consensus on the structural reforms needed to address deep-rooted challenges—such as high labor informality, low productivity and weak institutional frameworks—that hinder private investment. This has created a vicious cycle: The absence of reforms leads to limited growth and social progress, which in turn fuels…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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