The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) cut its 2026 growth forecast for Argentina to 1.9% on Thursday, from 3.3% in August, just below the 2.0% it expects for the region.
The commission now expects Latin America and the Caribbean to grow 2.0% this year, down from 2.2% in August. For Argentina, it sees a recovery to 3.0% next year, a step down from its August forecast.
The commission said Argentina’s macroeconomic adjustment and the shift in relative prices (some prices rising faster than others) have weakened domestic demand and imports, while improving incentives to export. It also pointed to higher energy and food prices, which raise production costs, and to a regional backdrop of geopolitical tension, disrupted shipping routes and less predictable trade policy.
The cut follows the International Monetary Fund’s cut to 2.1% two weeks ago. ECLAC’s forecast is 0.2 points lower. INDEC, the national statistics agency, reported activity 1.7% below a year earlier in August.
ECLAC said slowing job creation in the region is limiting gains in incomes and consumption. It said the 2027 rebound depends on world demand, commodity prices and international financing conditions, and could be affected by the El Niño weather pattern.