The World Bank says Latin America and the Caribbean can overcome its long-standing low-growth cycle by harnessing entrepreneurship to create jobs, boost productivity, and foster innovation. In its latest report, the World Bank forecasts regional growth at 2.3 percent in 2025 and 2.5 percent in 2026, marking it as the slowest-growing area globally amid inflation, high debt, and weak investment.
The report emphasizes the importance of accelerating reforms to improve the business climate and attract private capital. However, challenges such as global demand declines, falling commodity prices, and rising inflation continue to weigh on the region’s recovery.
William Maloney, the World Bank’s chief economist for LAC, stressed that supporting entrepreneurship is key to driving growth. The report advocates for reforms focused on investing in human capital, improving the business environment, and expanding access to finance to help entrepreneurs thrive.
The report emphasizes the importance of accelerating reforms to improve the business climate and attract private capital. However, challenges such as global demand declines, falling commodity prices, and rising inflation continue to weigh on the region’s recovery.
William Maloney, the World Bank’s chief economist for LAC, stressed that supporting entrepreneurship is key to driving growth. The report advocates for reforms focused on investing in human capital, improving the business environment, and expanding access to finance to help entrepreneurs thrive.
