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World Bank Cuts Argentina’s 2025 Outlook to 4.6% but Sees It Leading Major Latin Economies

The bank attributes the downgrade to weaker external conditions.

Overview

  • The new forecasts put growth at 4.6% in 2025, down from 5.5% projected in June, with 4.0% expected in 2026 versus 4.5% previously and 2027 unchanged at 4.0%.
  • Despite the trim, Argentina is projected to record the fastest expansion among the region’s large economies and rank second overall behind Guyana at 11.8%.
  • The report describes a notable rebound led by recovering agricultural exports and early gains in private consumption and investment alongside easing inflation and a fiscal surplus.
  • The World Bank cites a tougher global backdrop—higher interest rates, softer demand and falling commodity prices—with Latin America and the Caribbean seen growing 2.3% in 2025.
  • It urges reforms to spur “transformative” entrepreneurship focused on human capital, a better business climate and access to finance, and local media report a World Bank commitment of about US$4 billion in near‑term disbursements.