Preliminary Overview of the Economies of Latin America and the Caribbean, 2024. Executive summary

Latin America and the Caribbean is caught in a trap of low capacity for growth, according to the Economic Commission for Latin America and the Caribbean (ECLAC). The region’s economies are projected to expand by 2.2% and 2.4% in 2024 and 2025, respectively. Although these figures are above the 2015–2024 average of 1.0%, they are insufficient to close the gap with the economies of developed countries. The 2024 and 2025 international context is one of highly uncertain financial and trade conditions and slowing growth for the region’s main trading partners. Domestic macroeconomic policy space remains limited, and while fiscal efforts are focused on avoiding a sharp increase in public debt, the speed and magnitude of monetary policy rate cuts are determined by the depreciation of the region’s currencies. Overcoming the trap of low capacity for growth requires a massive mobilization of financial resources and a concerted effort to coordinate macroeconomic policies, smooth fluctuations in the economic cycle and implement productive development policies that boost investment and productivity for the economies of the region.