IMF Downgrades Growth Forecasts for Latin America, Caribbean

The International Monetary Fund (IMF) has downgraded its 2025 economic growth forecasts for several regions, citing global trade tensions, US tariff increases, and broader economic uncertainty. The Caribbean is projected to see its growth fall to 4.2% after a strong post-pandemic rebound, with Guyana remaining a standout despite a sharp slowdown, while Haiti continues to face economic contraction. Latin America's overall growth forecast has been cut to 2.0%, largely due to a steep expected contraction of -0.3% in Mexico, which the IMF attributes to weaker activity, US tariffs, and increased geopolitical uncertainty; this projection has been publicly disputed by Mexico's President Sheinbaum. In Nigeria, the IMF expects growth to slow to 3.0% in 2025, down from earlier estimates, amid persistent high inflation, currency devaluation, and rising social tensions. The IMF also notes that declining oil prices and weaker global demand are weighing on the outlook for oil-exporting nations like Nigeria. Despite these challenges, some countries in the Caribbean and Latin America are still expected to record modest growth, though at lower rates than in previous years.