Pandemic Persistence Clouds Latin America and Caribbean Recovery
By Samuel Pienknagura, Jorge Roldós, and Alejandro Werner
COVID-19 has hit Latin America and the Caribbean harder than other parts of the world, both in human and economic terms. […]
Outlook for Latin America and the Caribbean: An Intensifying Pandemic
Latin America and the Caribbean have become the new COVID-19 global epicenter. The human cost has been tragic, with over 100,000 lives lost. The economic toll has also been steep. […]
Outlook for Latin America and the Caribbean: A Stalling Recovery
Economic activity in Latin America and the Caribbean remains sluggish. Real GDP is expected to grow by 0.6 percent in 2019—the slowest rate since 2016—before rising to 2.3 percent in 2020. […]
How the Commodity Boom Helped Tackle Poverty and Inequality in Latin America
By Ravi Balakrishnan and Frederik Toscani
June 21, 2018
Versions in Español, Português
People buying produce in a busy market in Bahia, Brazil. During the commodity boom, Brazil saw significant reductions in poverty and inequality (photo: golero/iStock by Getty Images)
Latin America may be the most unequal region in the world, but it is the only region to significantly lower inequality over the past two decades, […]
Corruption in Latin America: Taking Stock
By David Lipton, Alejandro Werner, Carlos Gonçalves
September 21, 2017
Versions in Español (Spanish) Português (Portuguese)
Systemic corruption drains public resources and drags down economic growth (photo: People Images/iStock).
Corruption continues to make headlines in Latin America. From a scheme to shelter assets leaked by documents in Panama, to the Petrobras and Odebrecht scandals that have spread beyond Brazil, to eight former Mexican state governors facing charges or being convicted, the […]
Rising Latin American Corporate Risk: Walking a Tightrope
By Carlos Caceres and Fabiano Rodrigues Bastos
Versions in Português (Portuguese) and Español (Spanish)
The rapid increase in Latin American corporate debt—fueled by an abundance of cheap foreign money during the past decade—has contributed to an increase in corporate risk. Total debt of nonfinancial firms in Latin America increased from US$170 billion in 2010 to US$383 billion in 2015. With potential growth across countries in the region slowing, in line with the end of the commodity supercycle, it will now be more difficult for firms to operate under increased debt burdens and reduced safety margins.
In this environment, Latin […]
A Big Step Forward for Bolstering Financial Inclusion
By David Marston, Era Dabla-Norris, and D. Filiz Unsal
(version in Español)
Economists are paying increasing attention to the link between financial inclusion—greater availability of and access to financial services—and economic development. In a new paper, we take a closer look at exactly how financial inclusion impacts a country’s economy and what policies are most effective in promoting it.
The new framework developed in this paper allows us to identify barriers to financial inclusion and see how lifting these barriers might affect a country’s output and level […]
Latin America: Making the Good Times Better
Latin America has enjoyed tremendous economic dynamism and a rising quality of life over the past decade. But the region’s transformation is not yet complete. Leaders across the region should capitalize on today’s favorable conditions, transforming their countries to the next level, and ensuring that the benefits of growth are more widely shared.
The question is: how best to do that? As I travel through the region next week—visiting Panama, Uruguay, and Brazil—I’m looking forward to hearing the views of government officials, parliamentarians, and university students on the key challenges facing their countries today.