On October 22, 2024, the International Monetary Fund (IMF) announced that the GDP in Latin America and the Caribbean is projected to grow by 2.1% this year, an increase of three-tenths of a percentage point from earlier estimates made in July.
The IMF significantly upgraded its growth forecast for Brazil to 3.0% for 2024, up from 2.1% previously, citing stronger private consumption and investment driven by a robust labor market and government support. In contrast, Mexico's economy is expected to expand by only 1.5%, which is seven-tenths of a percentage point lower than earlier projections, reflecting weakening domestic demand.
Brazil's improved outlook contrasts with Argentina, which is projected to experience a contraction of 3.5% this year, more than double its previous decline of 1.6%. However, the IMF anticipates a strong recovery for Argentina in 2025, forecasting a growth rate of 5.0%.
Overall, economic activity in the region is expected to remain stable compared to the 2.2% growth recorded in 2023, with an acceleration to 2.5% anticipated in 2025.