IMF Maintains Growth Forecast for Latin America in 2025
The International Monetary Fund (IMF) has kept its growth forecast for Latin America unchanged for this year, even as it revised down its projections for the region’s largest economy, Brazil.
“In Latin America and the Caribbean, overall growth is expected to slightly accelerate to 2.5% in 2025, despite the anticipated slowdown in the region’s major economies,” the IMF noted in its updated World Economic Outlook.
Revised Projections of Brazil and Mexico
The IMF downgraded Brazil’s growth forecast for this year to 2.2%, a significant drop from the 3% estimated in its October report. For 2026, Brazil’s growth is also projected to remain at 2.2%, signaling a moderate pace of economic expansion. The Brazilian Real suffered a strong depreciation in 2024.
Mexico’s growth forecast for this year remains unchanged at 1.4%, with the IMF predicting a gradual acceleration to 2% in 2026, reflecting a steady recovery in economic activity.
The Case of Argentina
The International Monetary Fund (IMF) remains notably optimistic about Argentina’s economic future. In its latest World Economic Outlook update, the IMF maintained its projection of a 5% increase in GDP for the current year and revised its 2026 growth forecast upward, also to 5%.
Released Friday morning in Washington, the report outlines global growth expectations of 3.3% for both 2025 and 2026, falling below the historical average of 3.7% (2000–2019).
Developed Economies
The International Monetary Fund (IMF) has revised upward its growth forecast for the United States, now projecting the world’s largest economy to expand by 2.7%, an increase of 0.5 percentage points from previous estimates.
In contrast, growth in the eurozone is expected to remain subdued, with the IMF forecasting a modest expansion of 1%, up slightly from 0.8% in 2024.
These updates highlight the diverging economic trajectories between the U.S. and the eurozone, reflecting stronger momentum in the American economy while Europe continues to face slower recovery dynamics.
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