Latin America and the Caribbean remains caught in a trap of low capacity for growth. ECLAC forecasts regional growth of 2.3% in 2026, slightly below the 2.4% recorded in 2025, marking four consecutive years of growth rates around 2.3%. This 2025 edition of the Preliminary Overview of the Economies of Latin America and the Caribbean shows that this performance comes amid global uncertainty and domestic constraints which limit investment growth, productivity and the capacity to generate formal employment. The economic outlook of the region is mixed. Although inflation continues to decline, facilitating more accommodative monetary stances, private consumption growth is slowing. Despite the pick-up in investment, it remains limited and gender gaps in employment persist. Meanwhile, external accounts have registered moderate but persistent deficits, with vulnerabilities related to dependence on primary exports and rising interest payments. Escaping the trap of low capacity for growth requires better-coordinated policies and robust institutions to manage and sustain them. Fiscal sustainability must be combined with greater investment, monetary policies that ensure stability and productive development policies scaled up to drive innovation and quality employment. Only through this comprehensive approach can the region strengthen its resilience and move towards more productive, inclusive and sustainable development.