Abstract
<jats:p>Latin America and the Caribbean enters 2026 amid a complex global environment marked by heightened geopolitical tensions, shifting trade policies, and persistently high global interest rates that limit external support for growth. Even so, the region has shown resilience, with steady growth, strong labor markets, contained inflation, and low sovereign risk premia reflecting strengthened policy frameworks. As the 2026 Latin American and Caribbean Macroeconomic Report notes, significant challenges remain--including weak productivity growth, high public debt, and tight financing conditions--yet digitalization, artificial intelligence, and rising demand for critical minerals offer the region new growth prospects in a shifting global economy.</jats:p>