According to its latest report on Latin America, the organization estimated that this improvement will occur after Argentina fell 2.8% in 2024, less than expected. The report highlights the growth in confidence of the private sector to do business in Argentina.
After two years of recession, the recovery of the Argentine economy for this year and next will have as its main drivers “agriculture, energy and mining, supported by macroeconomic stability and recently enacted pro-business legislation”indicates the job.
The World Bank further expects “the government to maintain a tight fiscal policy to support sustained progress in reducing inflation and uphold the credibility of the current policy framework.”
What the World Bank predicted for Latin America in 2025
For Latin America, the report forecasts growth of 2.5% this year and 2.6% in 2026, “mainly driven by Argentina’s recovery after two years of economic contraction.”
In addition, he expects growth in the region’s other major economies, Brazil and Mexico, “to slow down this year as a result of weak consumption and investment.” A slight improvement is expected only by 2026.
According to the World Bankbusiness confidence started at an extremely high level in Argentina around November 2023, in the middle of the electoral process that determined the arrival of Javier Milei to the Presidency.
With the same intensity, business support fell abruptly in the first months of management. Then it moved irregularly until September, when it rose again until it had the best score of the 5 countries.
He World Bank included Argentina among the factors that will allow the recovery of the region, which will occur “As Argentina recovers, interest rates will normalize and inflation will drop.”
According to its projections, “commodity prices will support the region’s exports, although China’s weak growth could limit demand for major commodities.”
The report also mentioned the recovery of Argentine foreign trade in the second half of the year: “While most countries had trade deficits, Argentina recorded a significant trade surplus, which largely reflected a marked reduction in imports due to the substantial depreciation of the currency.”
In relation to prices, the organization said that “although it has decreased significantly, accumulated inflation in Argentina remained above 100 percent at the end of the year, partly as a result of the strong depreciation of the currency and the adjustments to regulated prices.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
