Argentina Set to Post the Second-Fastest Growth in South America in 2026
Argentina’s economy is expected to expand by 3.8% in 2026, second only to Paraguay in South America, which is forecast to grow by 4.5%.
Quick overview
- Argentina is projected to have a strong economic growth rate of 3.8% in 2026, ranking second in South America.
- The country's growth is expected to slow down from 4.3% at the end of the current year.
- Argentine stocks are performing well on Wall Street, with notable gains in banking stocks.
- The country's risk index is decreasing, falling below 580 basis points.
The country is also expected to outperform most nations in Latin America and the Caribbean.
Argentina is set to record one of the strongest economic growth rates in Latin America in 2026, trailing only a handful of countries, according to a recent report by the Economic Commission for Latin America and the Caribbean (ECLAC).
Based on the organization’s projections, Argentina’s economy is expected to expand by 3.8% in 2026, second only to Paraguay in South America, which is forecast to grow by 4.5%. Even so, this would mark a slowdown compared with the outlook for the end of the current year, when growth is projected at 4.3%.
Across the rest of Latin America and the Caribbean, growth rates higher than Argentina’s are expected only in Costa Rica (+3.9%), Honduras (+3.9%), Antigua and Barbuda (+5%), and Guyana (+24%). Guatemala is also projected to grow by 3.8%, matching Argentina’s pace.
Argentine assets on Wall Street
Argentine stocks listed in New York are also trading mostly higher. Among ADRs, banking stocks such as Grupo Supervielle (+3.1%) and Grupo Financiero Galicia (+3.0%) are leading gains, while Loma Negra is down 0.9%.
At the local level, the S&P Merval index is up 1.5% at 3,056,737.41 points, while its dollar-denominated counterpart rises 0.8% to 1,985.69 points. Shares are broadly higher, led by Aluar (+5.1%), Banco Macro (+2.8%), and BBVA Argentina (+2.4%).
Dollar-denominated sovereign bonds are also posting average gains of around 0.8%, led by the Global 2035. In this context, Argentina’s country risk index is falling sharply, breaking below 580 basis points to 573 bps.
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