World Bank: Stronger growth possible in Latin America, Caribbean despite 2.2% outlook

WASHINGTON, 6th October, 2026 — Latin America and the Caribbean is projected to grow 2.2% in 2026, broadly in line with the rate of 2.4% recorded in 2025, according to the World Bank Group’s Latin America and the Caribbean Economic Update. Although average regional growth remains modest, diverging country paths show that a stronger performance is possible.

Several countries making sound and durable policy choices are delivering stronger results, including faster growth consistently above 3 to 4%, more investment, and greater market confidence.

El Salvador and Paraguay continue to outperform the regional average, supported by improved security conditions, fiscal consolidation, and robust private investment. Panama and the Dominican Republic have sustained strong growth on similarly durable policy foundations. Argentina is on a similar trajectory, projected to expand for three consecutive years from 2025 to 2027, the first time in nearly two decades, driven by fiscal adjustment, tax reforms, and a more open economy.