World Bank Lowers Latin America 2026 Growth Outlook

The World Bank has reduced its economic growth forecast for Latin America and the Caribbean for 2026, citing deep-seated structural challenges alongside high interest rates and weak global demand. In its latest economic update, the institution projected the region to grow by 2.1%, down from the 2.4% growth seen in 2025 and lower than the 2.5% previously estimated in October.

The report notes that while consumer spending remains a primary driver of activity, investment has stalled as businesses seek more certainty regarding domestic policies and the global landscape.