Regional Economic Outlook: Western Hemisphere, October 2025: Navigating a Shifting Global Environment

Growth in the region was steady and disinflation slow, but rising public debt and weak medium-term growth pose challenges. Fiscal effort, strong monetary policy frameworks, and productivity reforms remain key to bolstering resilience and growth.

Publication date: October 2025

ISBN: 9798229025065

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Topics covered in this book

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Exports and Imports , Inflation , Economics- Macroeconomics , Public Finance , Urban and Regional , Growth , inflation , risks to outlook , uncertainty , fiscal consolidation , monetary and fiscal policy interactions , productivity , business dynamism , Productivity , Inflation , Fiscal stance , Total factor productivity , Exports

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Summary

Growth in Latin America and the Caribbean is expected to remain steady in 2025 and moderate slightly next year. Inflation convergence toward targets continues, though at a slower pace. The continued increase in public debt underscores the need for fiscal consolidation. While past reforms have secured price stability and helped anchor inflation expectations, lower public debt and improvements in fiscal stances can aid monetary policy in achieving inflation targets. Addressing low productivity through targeted structural reforms is essential for enhancing business dynamism and boosting growth.