Publication: Latin America and the Caribbean Economic Review, April 2025: Organized Crime and Violence in Latin America and the Caribbean
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2025-04-28
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The Latin America and Caribbean region faces a very different outlook from what was foreseen six months ago. Despite continued progress on reducing inflation, LAC continues to grow more slowly than any other region of the world and increasing its dynamism and job creation potential faces new and daunting challenges. First, higher and more persistent inflation than anticipated in the advanced countries has slowed global interest rate declines which constrains regional monetary authorities’ ability to loosen monetary policy. Second, higher interest payments on debt consume an increasing share of government revenue impeding progress on reducing deficits and creating fiscal space for necessary public investment. Third, rising tariffs have driven up uncertainty around the nature of the global trade order, threaten market access for exports, and call into question the nearshoring project. Fourth, increased return migration will, in some cases, stress local labor markets and dampen remittances. Fifth, organized crime, and the violence that accompanies it continues to expand, reducing the quality of life of citizens, dampening economic growth, and undermining the integrity of public institutions. Progress on the fiscal front, as well as continued productivity related reforms to make the region more able to negotiate a changing environment are needed.
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“Maloney, William F.; Melendez, Marcela; Morales, Raul. 2025. Latin America and the Caribbean Economic Review, April 2025: Organized Crime and Violence in Latin America and the Caribbean. © World Bank. http://hdl.handle.net/10986/42889 License: CC BY 3.0 IGO.”
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