US EditionWorld Bank Trims Latin America Growth Estimate for 2026
The bank cited high borrowing costs, weak demand and inflation as investment stays subdued across the region.
- On Wednesday, The World Bank lowered its 2026 economic growth forecast for Latin America and the Caribbean to 2.1%, below the 2.4% growth recorded in 2025 and the 2.5% estimate released in October.
- High borrowing costs, weak external demand, and persistent inflation strain economic expansion across the region. The World Bank pointed to "slower momentum amid tight domestic financial conditions, limited fiscal space, and trade policy uncertainty" as compounding pressures.
- Brazil and Mexico face sluggish growth, with Brazil's GDP forecast to grow 1.6% this year and 1.8% next year. Mexico faces 1.3% growth in 2026 as ongoing trade deal reviews fuel investment uncertainty.
- Argentina stands out as a regional exception, where stabilization and reforms have improved financial conditions. The World Bank urged governments to focus on "getting the basics right first" by strengthening institutions and investing in skills.
- Despite current headwinds, the region possesses significant untapped potential for future growth, including roughly half of the world's lithium reserves and a third of its copper. This clean energy mix positions Latin America strategically amid global energy transition efforts.
14 Articles
14 Articles
Latin America growth slips as weak investment persists, World Bank says
The World Bank has cut its 2026 growth forecast for Latin America and the Caribbean to 2.1%, down from 2.4% recorded last year, warning that the region faces a toxic combination of weak investment, tight fiscal space, and productivity deficits.
World Bank Lowers Economic Growth Forecast for Latin America and the Caribbean
The World Bank revised its 2026 economic growth forecast for Latin America and the Caribbean, predicting a decrease to 2.1%. This reduction reflects ongoing structural challenges, low investment, and global uncertainties affecting the region's economy. The update highlights that private consumption remains a key growth driver.
Latin America and the Caribbean (LAC) have fallen into a kind of economic modera, with slow growth and paralysed reforms, more attentive to the episodes of international uncertainty, many of them promoted by their neighbor to the north, than to their own becoming. The World Bank anticipates that the region’s economy will grow by 2.1% this year, three tenths less than last year, according to the latest edition of the Economic Panorama of Latin Am…
Latin America and the Caribbean will grow 2.1% in 2026, below the 2.4% recorded in 2025, according to the latest edition of the Economic Panorama of Latin America and the Caribbean of the World Bank. By 2027 it is projected at 2.4%.
The World Bank. Image: Flickr Arvid Bring. The Latin American and Caribbean region faces a moderate economic outlook, with a growth projection of 2.1 per cent by 2026, a figure slightly below the estimated 2.4 per cent by 2025. According to the World Bank’s latest regional report, this limited dynamism responds to a complex macroeconomic environment where external and internal factors slow down the region’s productive potential. The agency warns…
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