World Bank Lifts Latin America’s 2026 Growth Forecast – Slow but Steady Recovery Ahead!
The World Bank has increased its growth forecast for Latin America and the Caribbean in 2026 from 2.4% to 2.5%, showing that the region’s economy is slowly improving. For 2025, growth is expected to be 2.3%, up from 2.2% in 2024.
In major countries, Brazil is expected to grow 2.4% in 2025 and 2.2% in 2026. Mexico’s economy could rise 0.5% in 2025 and 1.4% in 2026, supported by trade and new business activity. Argentina might grow faster, around 4.6% in 2025 and 4.0% in 2026, but it still faces challenges like high inflation and policy issues.
Some countries, such as Bolivia, may see slower growth or even small declines due to political problems and economic instability.
Even with this slight improvement, the region faces big issues — high inflation, large public debt, weak infrastructure, and global trade uncertainty.
Impact:
Latin America’s economy might continue to recover slowly. If inflation goes down and reforms continue, growth could get stronger in the next few years.