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World Bank forecasts modest growth for Latin America, highlights climate risks
The bank said downside risks include volatile energy prices and a severe El Nino that could disrupt agriculture, hydropower and inflation.
- On Tuesday, The World Bank upgraded its 2026 growth outlook for Latin America and the Caribbean by 0.1 percentage point to 2.2 percent, though warned of risks from high energy prices and El Nino.
- Susana Cordeiro Guerra, the bank's regional vice president, maintained the region "urgently requires new engines of productivity" and emphasized that sound macroeconomic reforms can foster stronger growth.
- While El Salvador, Paraguay, Panama, and the Dominican Republic show strong performance, Argentina is recovering from hyperinflation and expects growth for three successive years until 2027, a milestone not seen in nearly 20 years.
- The report noted that El Nino "could further disrupt agriculture and hydropower and push up food and energy prices," with forecasters predicting peak intensity this year never observed in the modern era.
- A bank statement accompanying the report noted that "risks to the region are tilted to the downside," with energy price volatility forcing central banks to keep interest rates higher for longer.
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The agency previews that the GDP will expand 2.1%, compared to the 3.6% that it had predicted in June; it has emphasized that there will be three consecutive years of growth (2025-2027) for the first time in almost two decades
·Vicente López, Argentina
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The World Bank plans that Chile’s Gross Domestic Product (GDP) will not grow more than 1% this year. According to the international organization, Chile would only surpass Bolivia.
·Las Condes, Chile
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Total News Sources58
Leaning Left0Leaning Right4Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
C 56%
R 44%
Factuality
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