The World Bank has emphasized the potential for Latin America and the Caribbean (LAC) to overcome its persistent low-growth cycle by fostering entrepreneurship to drive job creation, enhance productivity, and accelerate innovation. In its latest report, titled ‘Latin America and the Caribbean Economic Review: Transformational Entrepreneurship for Jobs and Growth,’ the institution highlighted the region’s economic challenges, including stubborn inflation, rising debt, weak investment, and global uncertainty. These factors are projected to limit regional growth to 2.3% in 2025 and 2.6% in 2026, the slowest among global regions. Susana Cordeiro Guerra, World Bank Vice President for Latin America and the Caribbean, stressed the need for governments to build on recent stability by accelerating reforms to improve the business climate, invest in infrastructure, and mobilize private capital. The report identifies external challenges such as declining global demand and commodity prices, which are expected to drop by 10% in 2025 and another 5% in 2026, impacting key sectors. Domestically, high inflation and public debt, with the debt-to-GDP ratio rising to 63.8% in 2024, further constrain economic activity. The report advocates for ‘transformational entrepreneurship’—high-growth firms that diffuse technology, create jobs, and boost productivity—as a catalyst for economic dynamism. William Maloney, World Bank Chief Economist for Latin America and the Caribbean, underscored the role of entrepreneurs in identifying opportunities and driving innovation. However, the region faces significant barriers, including limited access to finance, heavy regulation, skills gaps, and weak infrastructure. To address these challenges, the report proposes a three-point agenda: investing in human capital, supporting policy and regulatory reforms, and expanding access to finance. By implementing these reforms, the World Bank believes LAC can foster entrepreneurship, fuel innovation, and build more competitive economies.