Latin American and Caribbean countries face the challenge of adapting their economic strategies to cope with growing uncertainties, amid increasing global economic volatility. The report projects growth of 2.1 percent in 2025 and 2.4 percent in 2026, making the region the slowest growing one in the world. Low investment, high debt, and a shifting external environment are major barriers to the region’s development. Despite some progress in controlling inflation, fiscal deficits remain a pressing concern, with the debt-to-gross domestic product ratio expected to reach 63.3 percent in 2024, up from 59.4 percent in 2019.