World Bank Lowers Economic Growth Forecast for Latin America and the Caribbean

The World Bank has lowered its 2026 economic growth forecast for Latin America and the Caribbean to 2.1%, as outlined in its latest economic update released on Wednesday. This new projection falls short of the 2.4% growth recorded in 2025 and is also below the 2.5% growth estimate released by the institution in October.

The revision reflects enduring structural challenges within the region, including subdued investment and heightened global and domestic uncertainties. These factors continue to strain economic expansion efforts, according to the World Bank's assessment.

The report highlights that, despite these challenges, private consumption remains a vital growth driver, even as financing conditions remain restrictive. The bank's update underscores the significance of overcoming structural barriers to achieve sustained economic growth in the region.