The Inter-American Development Bank (IDB) has predicted that Latin American and Caribbean countries will slow their economic growth to 2.1% in 2026. The bank's Macroeconomic Report estimated economic growth of 2.2% in 2025 and forecasted for 2026, close to the region’s long-run average. Higher global interest rates and accumulated debt are increasing debt-service costs, putting pressure on public finances and allowing for future shocks. The IDB also suggested that digital tools could help governments improve tax collection, manage spending more efficiently and modernize payment systems. While unemployment is near historic lows and inflation has largely returned to target, weak productivity continues to limit income gains. The spread of AI and electrification is increasing demand for minerals such as copper, lithium and rare earths, where the region holds significant reserves.