IMF’s April 2025 Update: Latin America’s Economic Outlook

“The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity,” noted the International Monetary Fund (IMF) in their April 2025 World Economic Outlook (WEO) Update, which expects global GDP growth to hit 2.8 percent for the year, down from their 3.3 percent January prediction.

This April 22 report updates the original WEO report published in October 2024, which was then revised in January 2025. Latin America and the Caribbean’s GDP growth for 2025 is now projected at 2 percent, a 0.5 percent downward revision from the October and January predictions of 2.5 percent growth for the region.

While most countries in Latin America saw a negative change in their projected GDP growth for 2025, growth is still expected across the board except for Mexico, Haiti, and Venezuela. These three countries, once expected to grow, are now predicted to contract. According to the IMF, Mexico’s revision reflects “weaker-than-expected activity in late 2024 and early 2025 as well as the impact of tariffs imposed by the United States, the associated uncertainty and geopolitical tensions, and a tightening of financing conditions.” 

Panama had the largest upward GDP growth revision in the region, from 3 percent projected in October to a now projected 4 percent. The country is also expected to have the lowest inflation rate in Latin America. Argentina is projected to be the region’s fastest-growing economy. The IMF also decreased the country’s inflation forecast by 27 percentage points. Bolivia, Brazil, Haiti, and Venezuela had the most significant upward revisions for expected inflation rates.

AS/COA Online breaks down the IMF’s economic outlook, by country, for Latin America.