FLARblog | Latin America in 2024Q3: Financing Decompression and 2.1% Regional GDP Growth

In the past three months, Latin America has faced reduced external and domestic financing constraints, supported by lower interest rates driven by easing inflation in most countries. This context has enabled us to revise the region’s annual growth projection to 2.1% for 2024. However, inflation remains above target in several countries, and public debt continues to rise as a percentage of GDP, underscoring the need for greater fiscal consolidation efforts. These efforts, however, will need to be tailored to the diverse economic conditions across the region.