Business · Economy · 2 hrs ago
IMF cuts Latin America growth outlook and lowers Argentina forecast
The IMF expects Latin America and the Caribbean to grow 2.3% in 2026, slightly less than it forecast in July.
The revised outlook was presented in Bangkok during the Fund’s annual meetings with the World Bank.
Argentina’s growth forecast was cut from 3.5% to 2.1%, the region’s sharpest change described in the report.
The Fund said weaker activity and domestic demand, alongside tight financial conditions, led to the downgrade.
It also raised Argentina’s inflation forecast to 32.5% for 2026, up from 30.4% in April.
The lower growth outlook matters because the Fund also expects Argentina’s economy to expand more slowly in 2027, at 3.5% rather than 4%.
The IMF’s next forecast for the region is 2.5% growth in 2027.
The International Monetary Fund cut its 2026 growth forecast for Latin America and the Caribbean to 2.3%.
The Fund lowered Argentina’s 2026 growth forecast from 3.5% to 2.1%.
It attributed Argentina’s downgrade to weaker activity and domestic demand amid tight financial conditions and structural changes.
The Fund also raised its forecast for Argentina’s average inflation in 2026 to 32.5%.
- Who
- The International Monetary Fund issued the forecasts. Argentina and other Latin American and Caribbean economies are affected.
- What
- The Fund cut its 2026 regional growth outlook to 2.3% and Argentina’s to 2.1%.
- When
- The forecasts were presented on Monday, October 12, 2026.
- Where
- The World Economic Outlook was presented in Bangkok during the annual meetings of the IMF and World Bank.
- Why
- The Fund cited lower activity, weaker domestic demand, tight financial conditions and ongoing structural transformation in Argentina.
This story does not have two clearly opposing sides.
The IMF’s previous 2026 growth forecast for Argentina was 3.5%.
The Fund presented its World Economic Outlook in Bangkok and cut Argentina’s 2026 forecast to 2.1%.
- Latin America and the Caribbean growth, 2026
- 2.3%
- Argentina growth, 2026
- 2.1%, down from 3.5%
- Argentina inflation, 2026
- 32.5%, up from 30.4% in April
- Argentina growth, 2027
- 3.5%, down from 4%
- Uruguay growth, 2026
- 1.3%
What people are saying
lower activity observed through the third quarter of this year
weaker domestic demand in a context of still tight domestic financial conditions and the continued structural transformation of the economy
Sources
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