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World Bank Puts Argentina’s 2026 Growth at 3.6%, Calling It Latin America’s Outlier

The Bank credits fiscal discipline alongside pro‑investment reforms for the turnaround.

Overview

  • The World Bank now projects 3.6% growth for Argentina in 2026, down from 4% earlier, and calls the country the region’s main positive exception.
  • A shift from a large 2023 deficit to primary and overall surpluses helped drag bond risk spreads from about 2,200 basis points to under 600 by March 2026.
  • The report highlights new investment drivers, including the RIGI that cuts corporate tax on big projects to 25%, labor changes passed by Congress, and the MercosurEU trade pact ratified by Argentina’s Congress.
  • It warns that negative net international reserves and limited access to foreign debt markets still threaten financing for the recovery.
  • It also flags very weak private lending near 15% of GDP and faults the Tierra del Fuego tax regime for costing about US$1.07 billion a year without clear productivity gains.