By: Staff Writer
January 16, 2026
World Bank projects the growth forecast for Latin America and the Caribbean (LAC) in 2026 will be 2.3 percent and 2.7 percent in 2027.
The bank in its January 13, 2026 update, projects Latin America and the Caribbean will edge up from an estimated 2.2 percent growth in 2025 to 2.3 percent in 2026, then 2.6 percent in 2027.
That sounds steady, yet it is also the definition of the region’s long-running challenge: moderate growth that struggles to create room for big public investments, rapid job gains, or dramatic income catch-up.
The bank also said: “In the Caribbean, subregional growth is set to increase to 5.2 percent in 2026 and 6.6 percent in
2027, driven by Guyana’s ongoing oil boom.
“Excluding Guyana, the subregion is projected to grow by about 2.9 percent and 3.7 percent, supported by tourism and related services.
“Jamaica’s growth is projected at -2.3 percent in 2026 and 3.7 percent in 2027, remaining constrained by structural bottlenecks and the extent and speed of reconstruction following Hurricane Melissa.
“Haiti’s growth is forecast to rebound to 2 percent in 2026 after seven consecutive years of contraction, conditional on modest gains in stability and security.”
On the other hand, economic growth in Central America will remain stable at 3.6 percent in 2026 and 3.7 percent in 2027. Remittance flows are expected to decline, which will negatively affect economic activity in the coming years.
By regions, the entity forecasts that Argentina will lead economic growth within the region, moderating to 4% in 2026 and remaining at the same figure in 2027 despite a context marked by domestic political uncertainty. Colombia, on the other hand, which will hold its presidential elections at the end of May, is estimated to reach growth of up to 2.6 percent in 2026 and 2.8 percent in 2027.
Brazil will post economic growth of 2 percent in 2026, before rebounding slightly to 2.3 percent in 2027 reflecting the effects of high interest rates, trade-related obstacles and increased global uncertainty. Mexico, because of its trade relationship with the United States, expects growth of 1.3 percent in 2026 and a rise to 1.8 percent in 2027.
The World Bank has indicated a slowdown for Chile, with 2.2 percent economic growth in 2026 and 2.1 percent in 2027. Finally, Peru points to an increase of 2.5 percent in 2026 and also in 2027.