Low productivity restrains Latin America’s growth, driven by resource misallocation and weak firm productivity. Easing financial constraints, creating incentives for firms to grow, and strengthening competition can boost productivity and business dynamism. Rodrigo Valdés, IMF Western Hemisphere Director, addresses the main challenges faced by the region. https://www.imf.org/en/Publications/REO/WH/Issues/2025/10/17/regional-economic-outlook-western-hemisphere-october-2025(IMF)