IMF Regional Economic Outlook 2025: Latin America’s Growth Is Holding Steady, but Debt and Productivity Gaps Are Widening
SDG 8: Decent Work & Economic Growth | SDG 10: Reduced Inequalities
Institution: Ministry of Finance | NITI Aayog | Reserve Bank of India
The International Monetary Fund’s Regional Economic Outlook 2025 shows that Latin America and the Caribbean are expected to grow by about 2.4 % in 2025, slowing slightly next year as debt pressures and weak productivity continue to weigh on the region. Inflation is easing, but many governments remain short on fiscal space, with debt levels averaging above 65 % of GDP.
The IMF warns that long-term progress is being held back by low competition, rigid job markets, and limited innovation, leaving productivity growth nearly flat for a decade. It calls on countries to rebuild fiscal buffers, streamline regulations for businesses, and better align fiscal and monetary policy so that inflation control does not come at the cost of investment and jobs. Analysts note that while the region has avoided crisis, the risk now lies in stagnation if reforms do not accelerate.
For India, the report offers a reminder that steady growth must rest on strong fundamentals of sound public finances, healthy competition, and rising productivity. The same balance applies across ministries and institutions: the Finance Ministry on fiscal prudence, NITI Aayog on structural reform, and the Reserve Bank of India on price stability.
Follow the full report here: IMF Regional Economic Outlook – Western Hemisphere, Oct 2025