IMF Slashes Latin America Growth Forecasts Amid Energy Crisis and Lagging AI Gains

IMF lowers growth forecasts for Latin America and Caribbean due to energy shocks and limited AI benefits, with Argentina hit hardest.

Editorial Desk

October 13, 2026 One Min Read

POLICY WIRE — New York, United States — The International Monetary Fund has revised down its economic growth projections for Latin America and the Caribbean for 2026 and 2027, citing ongoing challenges from rising energy costs linked to the Middle East conflict and limited gains from the global artificial intelligence boom.

In its latest World Economic Outlook report, released in Bangkok, the IMF noted that most countries in the region are not benefiting significantly from the AI-driven investment surge that is helping other parts of the world manage energy-related disruptions. The fund now expects regional growth of 2.3% this year, a slight reduction from its previous forecast of 2.4%.

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The 2026 outlook was adjusted to 2.3%, down from 2.4%, while the 2027 projection fell to 2.5% from 2.7%. Argentina saw the largest downward revision, while Brazil’s economic outlook weakened. In contrast, Mexico’s 2026 forecast was raised, driven by stronger exports and more stable investment levels.

Reporting by Policy-Wire (PW)

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