World Bank projects Latin America and Caribbean growth slows to 2.2% in 2026
The World Bank says the region will grow 2.2% this year, a slight dip from 2.4% in 2025, with a split between faster reformers and lagging giants.
The World Bank’s Economic Update predicts that Latin America and the Caribbean will record 2.2% growth in 2026, a modest slowdown from the 2.4% achieved in 2025. A handful of nations pursuing durable reforms—El Salvador, Paraguay, Panama and the Dominican Republic—are expected to outpace the regional average, each expanding at more than 3% and attracting greater investment. In contrast, the two largest economies, Brazil and Mexico, are slated for modest gains of 2.1% and 1.4% due to tight monetary conditions, policy uncertainty and waning public investment.
Argentina’s growth is projected to halve to 2.1% after a 4.5% surge the previous year, though it remains on a three-year expansion streak under President Javier Milei. The report highlights downside risks such as volatile energy prices, high debt service, and the El Niño phenomenon threatening agriculture and hydropower, especially in the Andean and Central American regions.
