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World Bank Projects 2.3% Growth for Latin America and the Caribbean in 2026

The update flags sharp divergence, with Guyana-led Caribbean strength contrasting with headwinds in the largest markets alongside elevated policy risk.

Overview

  • The report sets regional growth at 2.3% for 2026 and 2.6% for 2027 after an estimated 2.2% expansion in 2025.
  • Argentina is forecast to grow 4.0% in 2026 and 2027, a moderation from prior projections following late‑2025 currency pressure and higher market rates that are expected to weigh on demand.
  • U.S. support, including swap lines, is cited as helping stabilize Argentina's financial conditions, with an exchange‑rate band adopted in April 2025 improving shock absorption.
  • Caribbean growth outpaces the region, driven largely by Guyana's oil boom, which lifts the subregion well above Latin America's larger economies.
  • Brazil is projected at 2.0% in 2026 rising to 2.3% in 2027 and Mexico at 1.3% and 1.8%, with risks highlighted from trade barriers, high public debt, external financing needs, and extreme weather.