The World Bank has reported that economic growth in Latin America and the Caribbean is projected to slow to 2.1% in 2026, down from the 2.4% recorded in 2025.
In its Latin America and the Caribbean Economic Update publication, the World Bank cited “a challenging macroeconomic environment” as the key factor behind the subdued outlook.
Other factors include inflationary pressures linked to geopolitical uncertainty, high borrowing costs, and weak external demand. These are dampening private investment and job creation in the region.
The report recommends several measures needed for sustained growth, including closing the skills gap, expanding access to financing, deepening trade integration, and building institutional capacity.
The report was published on Wednesday.