Latin America and the Caribbean
The new Regional Economic Update examines how artificial intelligence could raise productivity while reshaping work across the region, and recommends building firms’ capabilities, expanding short-cycle and technical training, and modernizing digital government and data systems.
THE WORLD BANK GROUP IN LATIN AMERICA AND THE CARIBBEAN
Latin America and the Caribbean continues to demonstrate macroeconomic resilience in a challenging global environment. However, beneath the surface, regional performance is marked by a clear divergence in growth paths.
While regional GDP is projected to grow at 2.2% in 2026 —broadly in line with 2025 growth— countries making sound and durable policy choices are outperforming the average. These frontrunners are consistently growing by 3% to 4%, successfully attracting robust investment and creating higher-quality job opportunities. This stark contrast proves that the overall sluggish regional growth does not reflect LAC’s true economic potential but rather results from today’s prevailing policy choices.
A gradual recovery to 2.5% is expected by 2027-2028 as monetary conditions ease, but the urgency for effective, long-term economic strategies is clear.
To unlock the region’s full potential, the World Bank Group (WBG) works with governments, the private sector, and civil society to energize economies and create job opportunities. Our strategy centers on strengthening regulatory and business environments, mobilizing private capital at scale through innovative financing, and proving that public policy credibility and openness to investment deliver tangible growth.
A critical focus of our regional strategy is securing the long-term productivity of the workforce to capitalize on an impending demographic shift. By 2035, the cohort of young people entering the workforce will equal 22% of the region’s current working-age population. To successfully harness this demographic dividend, countries must urgently close deep learning and entrepreneurship gaps.
These efforts are delivering concrete results:
Supporting growth: The WBG is supporting Argentina's economic reforms with an innovative package to mobilize $2 billion in commercial financing. This will lower financing costs, create jobs, and improve financial inclusion for small businesses
Education: In El Salvador, the World Bank is supporting education modernization to strengthen skills and expand employment opportunities. The government is leveraging technology, AI, and real-time data to strengthen foundational skills at scale.
Resilience and rebuilding: The World Bank Group has approved US$200 million in additional financing to help Colombia respond to and recover from the earthquake that struck the country.
Job Access & Mobility: Urban transport projects in Brazil and Ecuador are improving mobility and access to employment, while reducing carbon emissions.
Innovation: A World Bank Group program has been integrating artificial intelligence (AI) into Peru’s public schools.
Through strategic alliances—such as deepening collaboration with the Inter-American Development Bank—the World Bank Group is helping countries deliver tangible improvements for their citizens and laying the foundation for long-term development.
BY THE NUMBERS: LATIN AMERICA AND THE CARIBBEAN
OUR PRIORITIES IN LATIN AMERICA AND THE CARIBBEAN
Education
Over the past decade, the World Bank has led efforts to address the learning crisis in the region. From fiscal years 2013 to 2023, the institution implemented 48 education projects across 19 countries in Latin America and the Caribbean, with a total investment commitment of US$5 billion.
Jobs
In partnership with governments and the private sector, the World Bank Group works across the entire job creation cycle – offering expertise, direct investment, and mobilizing capital to generate more and better employment opportunities.
Health
The new WB-PAHO Lancet Regional Health Americas Commission is examining the future of primary health care in Latin America and the Caribbean to strengthen health systems and enhance resilience against future public health emergencies. The Commission aims to generate knowledge that will guide decision-making for the development of primary health care and resilience across the region.
From Mexico to Argentina, Latin America and the Caribbean is a region of constant progress. It's a place where people grow and adapt, embracing innovation and safeguarding the environment. Here, #WeTakeAction to expand opportunities for everyone.
CONNECT WITH US
Regional Leadership
Acting Chief Economist and Practice Manager, Poverty and Equity, Latin America and the Caribbean
Regional Contact
World Bank
1818 H Street NW, Washington, DC 20433 USA
LACinfo@worldbankgroup.org
- world-bank:content-type/feature story
- world-bank:content-type/feature story