Brazil and Mexico, the region's largest economies, will have positive performance this year, helping the improvement in the region forecast.
The International Monetary Fund (IMF) has revised its Gross Domestic Product (GDP) forecast for Latin America by one tenth upwards in 2024, estimating an economic expansion of 2% in the region, compared to the 1.9% published last January.
In 2025, Latin America would grow by 2.5%, the same than expected in January. At that time, the forecast for 2025 improved by one tenth, while the estimate for 2024 fell and has not yet recovered since the levels expected in October 2023.
In its 'World Economic Outlook' presented this Tuesday in Washington, the IMF affirms that the risks to global outlook are now "quite balanced", although it warns the threat of inflation derived from geopolitical tensions, such as the war in Ukraine and the situation in the Middle East.
Brazil and Mexico, the region's largest economies, will have positive performance this year, helping the improvement in the region forecast. South American economies will also improve better than expected earlier.
Compared to last January's forecast, when Brazil was expected to grow by 1.7%, the IMF now projects that it to expand by 2.2%. In 2025, Brazilian GDP would grow 2.1%, two tenths more than the forecast.
However, the projections for Mexico have been revised downwards. Growth of 2.4% is now estimated, which is three tenths less than in January's report. In 2025, the estimate is 1.4%, one tenth less.
For its part, the Peruvian economy will grow 2.5% this year and 2.7% in 2025. Meanwhile, Argentina's economy is projected to fall 2.8% and inflation will accumulate 150%, with a marked rebound expected for 2025 amid a strong inflationary slowdown.
The multilateral organization highlights that as regards to South America, Uruguay (3.7%), Peru (2.5%) and Colombia (1.1%) would improve their performance compared to 2023 figures, whereas Venezuela will experience the highest growth (4%), followed by Paraguay (3.8%), Brazil (2.2%), Chile (2%), Bolivia (1.6%), Ecuador (0.1%) and Argentina (-2.8%).
“Except Argentina, there is no South American country that appears negative this year,” highlighted the IMF.
