A. M. 
Latin America and the Caribbean will face a moderate economic outlook in the coming years, marked by external and internal challenges that continue to limit its productive dynamism, according to the latest edition of the Latin American and Caribbean Economic Outlook report, released on april 8, 2026, in Washington.
According to the report, Latin America and the Caribbean (LAC) is projected to grow by 2.1% in 2026, a slowdown from the 2.4% recorded in 2025, while a slight recovery is expected in 2027 with growth again at 2.4%. This performance reflects a complex macroeconomic environment, characterized by high financing costs, weak external demand, and geopolitical uncertainty, factors that continue to hinder private investment and job creation.
The report highlights that, although household consumption continues to partially support economic activity, it does so in a limited way. In contrast, private investment remains lagging due to an adverse international context.
Among the main factors contributing to this scenario are high global interest rates, the economic slowdown in developed countries and China, persistent uncertainty in trade policies, and geopolitical tensions, including conflicts in the Middle East. These elements have generated additional inflationary pressures, especially due to rising energy prices, which could delay the easing of monetary policies in the region.
At the fiscal level, governments face significant constraints. Although public debt levels have stabilized, they remain high compared to historical standards, and increased interest payments limit investment in infrastructure and social programs.
Despite the challenging outlook, the report underscores that Latin America and the Caribbean possess significant strategic advantages, such as nearly 50% of the world’s lithium reserves, a third of the world’s copper, a relatively clean energy mix, and ongoing reform processes in several countries. These assets represent a key opportunity to promote more sustainable, inclusive, and productivity-driven growth.
The World Bank indicates that restoring business confidence, boosting private investment, and increasing productivity will be fundamental to reversing the economic slowdown. In this regard, the report proposes four priority actions: reducing skills gaps through education and technical training; expanding access to finance and strengthening insolvency frameworks; deepening trade integration to enhance competitiveness; and improving institutional capacity to design effective policies.
The report concludes that, while projected growth is moderate, the region has the capacity to reorient its economic development if it manages to capitalize on its resources and advance structural reforms that promote productivity and the creation of quality jobs.
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