The Brazilian economy is expected to grow 2.4% this year, above the Latin America and Caribbean average (2.3%). The projection is from World bankwhich released on Tuesday (7) another edition of the economic report to the region.
World Bank economists provide for the following expansions for Gross Domestic Product (GDP – set of Brazilian goods and services):
| Year | GDP growth projection |
| 2025 | 2.4% |
| 2026 | 2.2% |
| 2027 | 2.3% |
The projections are the same as the June report this year. The estimates are above both those of the Brazilian Central Bank (BC) and the financial market here in the country.
BC’s monetary policy report, released on the 25th, points out growth of 2% in 2025 and 1.5% next year.
The Focus Bulletin, BC survey with financial institutions, released on Monday (6), Predicts GDP of 2.16% in 2025 and 1.8% by 2026.
Last year, the Brazilian GDP had Expansion of 3.4%.
The Ministry of Finance has more optimistic projections, with up 2.3% in 2025 and 2.4% in 2026according to the September Macrophiscal Bulletin.
The World Bank report does not bring specific justifications for the projection of all countries, only for the Latin America and Caribbean region as a whole.
Latin America and Caribbean
THE World bank It is an international financial institution, made up of 189 countries. The institution is part of the United Nations System and is headquartered in the US capital, Washington.
The multilateral bank has the role to grant loans to developing countries to finance infrastructure, health, education and other areas projects.
For the 29 countries in Latin America and the Caribbean, the World Bank foresees growth of 2.3% in 2025 and 2.5% in the following year. The 2025 estimate is the same as the June report. The 2026 is 0.1 percentage point above. In 2024, Latin America and the Caribbean grew 2.2%, the World Bank points out.
By separating projections by countries, Guyana stands outwith 11.8% GDP expansion this year and growth of over 20% in the following years: 22.4% in 2026 and 24% in 2027. The explanation is in the powerful oil sector.
Guiana recently plunged into the oil exploration on the equatorial margin, a geographical region near the Ecuador line, also desired by Petrobras.
After Guyana, the greatest expected growth is from Argentina4.6% in 2025 and 4% next year. Despite the highlight, the projection is a retreat compared to the June report (5.5% in 2025, 4.5% in 2026).
“Argentina continues to have a remarkable economic recovery after two consecutive years of contraction, although deep challenges still persist,” the economists say.
The worst numbers are from Bolivia, with a three -year GDP drop forecast-0.5% this year, -1.1% in 2026 and -1.5% in 2027.
Reasons for the region
According to the World Bank, Latin America and the Caribbean have a slower pace among global regions. Among the explanations, the institution’s experts point out external and internal issues.
In the external are the slowdown of the global economy and fall in the price of commodities (raw materials marketed on large scale and international prices). Countries like Brazil, Chile, Venezuela and Bolivia are major exporters of commodities.
In the internal scenario, economists point to monetary policy (fighting inflation), which acts as a brake on the economy. Other points cited are low level of investment, “both public and private”, and “persistent lack of tax space”, ie governments with limitation of public spending.
“These challenges only reinforce the relevance of the growth agenda aimed at growth that are needed in the areas of infrastructure, education, regulation, competition and tax policy,” the World Bank points out.
“Facing these issues requires profound reforms, including: improving educational systems at all levels, strengthening the quality of universities and research institutes, as well as strengthening their bonds with the private sector; and deepening capital markets and facilitating risk management inherent in innovation and entrepreneurship processes,” the report.
