The broad-based acceleration of global growth in 2017 is reflected in the solid gains posted by the economies of the United States and Canada, both of which are expected to grow above potential in the near term. More broadly, growth in both advanced and emerging market and developing economies is expected to gain further momentum in 2018 and 2019, reflecting the effects of expansionary US fiscal policy, favorable global financial conditions, and improved prospects for external demand. Risks to the outlook are broadly balanced in the near term. Over the medium term, however, global growth is expected to soften, and risks are tilted to the downside, owing to the possibility of a sharp tightening of financial conditions, escalating trade tensions and risks of a further shift toward protectionist policies, and geopolitical strains. In this global setting, economic recovery in Latin America and the Caribbean is gaining strength. Following a contraction in 2016, growth moved solidly into positive territory in 2017 and is expected to accelerate further in the near term, underpinned by the pickup in global demand and trade, accommodative global financial conditions, an uptick in commodity prices, and a cyclical recovery of domestic private investment.Despite the improved near-term outlook, significant risks remain. In addition to the risks of tightening global financial conditions and populist changes in key economic partners, domestic elections and rising populist sentiment at home, as well as corruption scandals, could generate economic and policy uncertainty and derail the implementation of much-needed reforms.