World Bank Forecasts 2.3% Growth for Latin America and the Caribbean in 2026, 2.6% in 2027

The World Bank has forecast that the countries that make up Latin America and the Caribbean will post economic growth of 2.3% in 2026 and that this figure will improve to 2.6% in 2027 as domestic demand and trade flows recover, according to its latest published estimates.

The region’s economy grew by 2.2% in 2025, according to the World Bank’s forecast, on the back of higher growth rates in private and public consumption and investment than estimated in June.

“The strengthening of domestic demand was supported by import growth that exceeded expectations,“ the international institution has pointed out.

Argentina is the leader in economic growth with up to 5.2%, followed by Colombia, which is up to 2.6%

The World Bank estimates that growth in the Caribbean will increase compared to that of the region as a whole, reaching 5.2% in 2025 and 6.6% in 2027, driven by the oil boom that Guyana is experiencing. Excluding Guyana, this figure would be 2.9% and 3.7%, respectively, thanks to tourism and related services.

On the other hand, economic growth in Central America will remain stable at 3.6% in 2026 and 3.7% in 2027. Remittance flows are expected to decline, which will negatively affect economic activity in the coming years.

By regions, the entity forecasts that Argentina will lead economic growth within the region, moderating to 4% in 2026 and remaining at the same figure in 2027 despite a context marked by domestic political uncertainty. Colombia, on the other hand, which will hold its presidential elections at the end of May, is estimated to reach growth of up to 2.6% in 2026 and 2.8% in 2027.

Brazil will post economic growth of 2% in 2026, before rebounding slightly to 2.3% in 2027 reflecting the effects of high interest rates, trade-related obstacles and increased global uncertainty. Mexico, because of its trade relationship with the United States, expects growth of 1.3% in 2026 and a rise to 1.8% in 2027.

The World Bank has indicated a slowdown for Chile, with 2.2% economic growth in 2026 and 2.1% in 2027. Finally, Peru points to an increase of 2.5% in 2026 and also in 2027.