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Latin America Growth Dims: Investment Lags
9 Apr
Summary
- World Bank lowered Latin America's 2026 growth forecast to 2.1%.
- Subdued investment is hindering regional economic expansion.
- Focus on 'getting the basics right' is urged for sustainable growth.
The World Bank has revised down its economic growth projections for Latin America and the Caribbean for 2026, now forecasting a 2.1% expansion. This figure is lower than both the 2.4% predicted for 2025 and the 2.5% forecast in October. The primary factor limiting growth is subdued investment, as businesses await clearer economic signals and domestic policy frameworks.
Despite these challenges, the region possesses considerable potential due to abundant natural resources like lithium and copper, alongside a clean energy mix. However, the World Bank advises against immediate complex industrial policies. Instead, it recommends a focus on foundational elements such as enhancing skills, maintaining open economies, and reinforcing institutions to create a conducive business environment and generate quality employment.
