Description

Growth across the Western Hemisphere has remained resilient, supported by strong US demand, high commodity prices, easier financial conditions, robust tourism, and remittance inflows. These tailwinds have cushioned the negative effects of trade uncertainty, higher and more volatile energy prices, and shifts in immigration. However, public debt remains high, policy space is limited, and medium-term growth prospects are subdued. Higher global energy and food prices are also delaying the return of inflation to target. Policymakers should use the current favorable conjuncture to rebuild fiscal buffers, preserve price stability, and protect vulnerable households through targeted support. At the same time, structural reforms are needed to raise productivity, strengthen human capital and institutions, attract foreign direct investment, and capitalize on opportunities from digitalization, critical minerals, clean energy, and the reconfiguration of global supply chains.

More publications in this series: Regional Economic Outlook