Overview of the Global Economic Outlook for Latin America and Caribbean
According to a recent survey by the World Economic Forum (WEF), 45% of 73 leading economists from international organizations and global financial institutions predict weak economic growth for the Gross Domestic Product (GDP) of Latin America and the Caribbean this year. Only 34% anticipate moderate growth.
Inflation Dynamics
The survey reveals that the majority of these economists expect a clearer improvement in inflation dynamics. In April, 38% of the economists anticipated high inflation; however, this number has dropped to 18% in the latest survey.
Global Economic Outlook
At a global level, 72% of the economists consulted by WEF estimate that the world economy will weaken next year, reflecting the impact of disruptions in trade, technology, commodities, and institutions.
Disruptions in 2026
Aengus Collins, Head of the WEF’s Center for Geographic Economics Transformation and Growth, noted that many current economic disruptions lack a cyclical nature. Instead, they are isolated incidents requiring new forms of leadership and resilience.
Key Challenges for Economic Growth
When asked about the most frequent responses regarding inhibitors for economic growth and development over the next three years, weak institutions and governance emerged as the top concern for emerging economies, with 58% of mentions.
For advanced economies, political instability and social fragmentation were the most frequently cited challenges, noted by 68% of economists.
Impact on Mexico and China Trade
The survey also touched upon the implications of Mexico’s new tariff impositions on Chinese automobile exports, adding uncertainty to China’s export landscape. Mexico is the world’s largest buyer of Chinese automobiles.
Key Questions and Answers
- Q: What is the general outlook for Latin America and Caribbean’s economic growth? A: 45% of leading economists predict weak GDP growth, while only 34% anticipate moderate growth.
- Q: How do economists view inflation dynamics? A: Most economists expect a clearer improvement in inflation dynamics, with the proportion of those anticipating high inflation dropping from 38% in April to 18% in the latest survey.
- Q: What is the global economic outlook? A: 72% of consulted economists estimate that the world economy will weaken next year due to disruptions in trade, technology, commodities, and institutions.
- Q: What are the key challenges for economic growth and development? A: Weak institutions and governance are the most frequently cited concerns for emerging economies, while political instability and social fragmentation are the main challenges for advanced economies.
- Q: How do Mexico’s tariff policies affect global trade? A: Mexico, being the largest buyer of Chinese automobiles, imposing new tariffs has added uncertainty to China’s export landscape.
