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[BUSINESS] · Argentina, Honduras, Costa Rica, Paraguay, Panama · 65 sources

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World Bank projects 2.2% growth for Latin America in 2026

The World Bank has released updated economic projections for the Latin American and Caribbean region, forecasting a growth rate of 2.2% for 2026. While the regional average is expected to slow slightly, several nations show significant trends.

El Salvador and Paraguay are projected to be regional leaders, with growth rates of 4.5% and 4.7% respectively, driven by fiscal austerity and improved security. Argentina is expected to see a growth rate of 2.1% in 2026, potentially marking its first three consecutive years of growth since nearly two decades, though market analysts warn of a possible technical recession following a 1% GDP drop in the third quarter of 2026.

Honduras is projected to grow by 3.4% in 2026, exceeding the regional average. In contrast, major economies like Brazil (2.1%) and Mexico (1.4%) face stagnation due to monetary constraints and policy uncertainty. Additionally, the IMF projects Panama's economy to expand by approximately 5% in 2026, supported by logistics and tourism, while advising continued fiscal consolidation.

Entities

Argentina · Caribbean · Dirección General de Aduanas · Dominican Republic · El Salvador · Guyana · International Monetary Fund · José Benjamín Mayorga · Latin America · Latin America and the Caribbean · Panama · Paraguay

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