Economic Growth in the Region Under Attack

Economic growth in Latin America and the Caribbean (LAC) is projected to slow to 2.1 percent in 2026.

That is down from 2.4 percent in 2025, according to the latest Latin America and the Caribbean Economic Update published by the World Bank. Growth is expected to recover modestly to 2.4 percent in 2027.  The report cites a challenging macroeconomic environment as the key factor behind the subdued outlook. High borrowing costs, weak external demand, and inflationary pressures linked to geopolitical uncertainty are dampening private investment and job creation across the region.