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World Bank Cuts Argentina’s 2025 Growth Forecast to 4.6%, Still Sees Region-Leading Rebound

The report cites a post-drought export rebound as the main driver.

Overview

  • Argentina is now projected to grow 4.6% in 2025 and 4.0% in 2026, down from June estimates of 5.5% and 4.5%, respectively.
  • Despite the downgrade, Argentina is ranked as the fastest-growing large economy in Latin America this year and second overall after Guyana.
  • The World Bank notes early effects of the government’s stabilization plan, including lower inflation and a fiscal surplus, alongside improving consumption and investment.
  • The outlook flags persistent risks from inflation, elevated debt-service costs, weak investment and a softer global environment with lower commodity prices.
  • The report calls for reforms in education, infrastructure, regulation, taxation and financing to boost high-growth entrepreneurship, as the OECD also trims Argentina’s outlook to 4.5% for 2025 and 4.3% for 2026.