IMF Urges Latin American Nations to Reduce Public Debt

The International Monetary Fund urged governments across Latin America and the Caribbean to reduce public debt and increase productivity to capitalize on favorable global financial conditions. In its Regional Economic Outlook, the organization projected economic growth for the region at 2.3% for 2026 and 2.5% for 2027, figures that are slightly lower than forecasts issued in July.

While high commodity prices, tourism, and strong demand from the United States continue to sustain economic activity, the IMF warned that fiscal adjustments have stalled in many countries. Nigel Chalk, head of the IMF's Western Hemisphere Department, described the risk of the region falling further behind advanced economies as an urgent problem.

The report indicates that inflation should return to target levels by the end of 2027. However, the IMF noted that geopolitical uncertainty and conflicts in the Middle East leave risks tilted toward higher inflation and lower economic growth.