Argentina stands out as the best-performing large Latin American economy, with growth of 3.5% this year and 4% next year.
The International Monetary Fund (IMF) projects that Latin America and the Caribbean will grow by 2.4% this year and 2.7% in 2027, although with notable dispersion among the region's countries, according to the World Economic Outlook report published Wednesday.
The institution led by Kristalina Georgieva indicated that Latin American GDP will advance this year in line with the previous one, while the expected acceleration for next year will only be "modest."
Among Latin America's main economies, Argentina will see the highest GDP increase in both 2026 and 2027, with growth of 3.5% and 4%, respectively. This leaves the April figures unchanged.
Next, Brazil will grow 2.4% this year and 2.2% next year, half a point and two-tenths higher than forecast three months ago. Mexico will step on the accelerator from 0.5% in 2025 to 1.2% in 2026 and 1.9% in 2027, although the IMF has cut these estimates by four and three-tenths.
"Growth in Brazil is expected to remain solid in 2026, although it will slow slightly next year. In Mexico, growth is expected to accelerate slightly thanks to less restrictive domestic policies, but uncertainty will continue to limit activity," the organization summarized.
GLOBAL OUTLOOK
The IMF has anticipated that global GDP will moderate to 3% in 2026 from 3.5% in 2025, then rebound to 3.4% in 2027. Again, there are differences between countries due to upward revisions for energy-exporting nations or those that are tech leaders, and downward revisions for commodity importers or those lagging in the AI race.
Global trade will "drastically" slow its dynamism, reducing growth from 5% in 2025 to 3.5% in 2026, but will recover to 4.3% in 2027.
"This evolution reflects the concentration of activity in the early stages of tariff implementation and the drag they impose, as well as the gradual adjustment of trade links and production chains through [...] trade diversion and redirection, and strong growth in technology-related trade flows," the IMF elaborated.
World inflation is expected to stop its climb in 2027 at 3.9%, down from the expected 4.7% in 2026, six-tenths higher than in 2025 due to energy and food. The IMF has raised its 2026 reading by three-tenths and its 2027 reading by two-tenths.
