1 May 2026

The Middle Eastern war will likely widen economic issues across Latin America and the Caribbean according to the IMF. In the short-term, oil exporters are likely to see a boost whilst tourism-reliant economies and those that have to import energy are more at risk. The multilateral estimated that the region will grow 2.3% in 2026 and 2.7% in 2027. Central banks have kept inflation in check and growth is mainly going with projections states the IMF’s report on the region.

However, inflation will rise through higher fuel, transport and food costs. Most of the countries to benefit from the war are in South America with export income rising for oil producers. Guyana and Trinidad and Tobago in the Caribbean have seen likewise changes. Central America as an energy import region will face significant issues with the IMF suggesting renewable energy could provide some relief.

Source: Central America Briefing | Vol 14, Issue 9