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Latin America & the Caribbean Economic Update
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. 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.
Rationalizing Informality
Labor informality is far from being a homogeneous block of people. Workers make decisions based on their capabilities, preferences, and circumstances. Understanding this diversity is essential for designing policies that expand available opportunities and allow more people to access productive, quality jobs. This new publication invites readers to look beyond conventional solutions, promoting a comprehensive and dynamic understanding of the current realities of labor markets in national economies.
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The Office of the Chief Economist provides guidance on strategic priorities and technical quality of economic analysis in the Latin America and the Caribbean region (LAC).
The Office generates timely and relevant knowledge on policy and institutional reforms in the region. It produces research articles and reports on the most pressing development issues facing the continent and fosters a community of economists interested in Latin America and the Caribbean, within the World Bank and with external audiences.
This mission is accomplished through:
- Advising on country and sectoral strategies.
- Quality enhancement of economic justification and analysis in adjustment and investment lending.
- Ensuring relevance, coherence and quality of non-lending services.
- Developing and disseminating regional economic studies.
- Serving as principal regional spokesperson inside and outside the Bank on strategic and economic issues facing the region.