Javascript Menu by Deluxe-Menu.com

SKNBuzz Radio - Strictly Local Music Toon Center
My Account | Contact Us  

Our Partner For Official online store of the Phoenix Suns Jerseys

 Home  >  Headlines  >  NEWS
Posted: Friday 17 January, 2025 at 12:45 PM

LAC growth expected to slow in 2025 and 2026

By: Staff Reporter, SKNVibes.com

    WASHINGTON, DC – THE International Monetary Fund (IMF) has projected steady global economic growth of 3 percent in 2025, with the Latin America and Caribbean (LAC) region also expected to expand, albeit at a slower pace.

     

    In its first World Economic Outlook for 2025, released on Friday (Jan. 17), the IMF forecasted a growth rate of 2.5 percent for the LAC region. While this marks an improvement over the 2.4 percent growth recorded in 2023 and 2024, it represents a subdued outlook as some of the region's largest economies face headwinds.

     

    The IMF predicts a modest increase of 0.2 percentage points for the region in 2026, reflecting a gradual recovery but not without challenges. Major global economies, such as the United States, are also expected to see slowed growth; the U.S., for instance, is forecasted to experience a 0.1 percentage point decline compared to last year. In contrast, Japan, the United Kingdom, and Canada are projected to post gains.

     

    At a press conference here in Washington, DC, Pierre-Olivier Gourinchas, Economic Counsellor and Director of the IMF's Research Department, highlighted that global inflation is expected to decline from 4.2 percent in 2025 to 3.5 percent in 2026.

     

    “This means that the very large global disruption that started with the pandemic, the war in Ukraine - which triggered the largest inflation surge in 40 years - is behind us,” Gourinchas said.

     

    This announcement will be particularly welcomed by the government of St. Kitts and Nevis, where inflation has been affecting food prices. Data obtained by SKNVibes News reveals that inflation in the twin-island federation fell to 2.46 percent in 2024, down from 3.56 percent the previous year.

     

    Despite the drop in inflation, St. Kitts and Nevis remains vulnerable due to its reliance on imported goods, primarily from the United States. In response, the government has introduced the Budget Boost Wallet (BBW), a $250 initiative to support eligible residents in managing food expenses.

     

    While data specific to St. Kitts and Nevis was not presented at the press conference, further updates on the World Economic Outlook are expected at the IMF Spring Meeting in April, also set to take place in Washington, DC.

     

Copyright © 2025 SKNVibes, Inc. All rights reserved.
Privacy Policy   Terms of Service