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World Bank Trims Argentina’s 2025–2026 Growth Outlook, Still Sees One of Region’s Fastest Rebounds

The Bank warns the rebound is fragile due to external headwinds plus structural weaknesses.

Overview

  • Argentina’s GDP growth is now projected at 4.6% for 2025 and 4.0% for 2026, down from 5.5% and 4.5% in June forecasts.
  • The country is still expected to be the region’s second‑fastest grower in 2025—behind Guyana—and the fastest among the larger Latin American economies.
  • The rebound is driven chiefly by a post‑drought recovery in agricultural exports and early gains in private consumption and investment tied to an initial stabilization plan that coincided with lower inflation and fiscal surpluses.
  • The World Bank cites a tougher global backdrop—elevated interest rates, softer commodity prices, and trade uncertainty including new U.S. tariffs—with regional growth seen at 2.3% in 2025 and 2.5% in 2026, the slowest among world regions.
  • Argentina is flagged as an exception on recent fiscal consolidation, yet the report underscores structural constraints such as weak investment and human‑capital gaps, including PISA results that trail peers; Clarín reports about US$4 billion in upcoming World Bank disbursements.