Outlook for Latin America and the Caribbean: New Challenges to Growth

2021-05-13T12:56:12-04:00January 29, 2020|

By Alejandro Werner

Español, Português

Economic activity in Latin America and the Caribbean stagnated in 2019, continuing with the weak growth momentum of the previous five years and adding more urgency and new challenges to reignite growth. Indeed, real GDP per capita in the region has declined by 0.6 percent per year on average during 2014–2019—a sharp contrast from the commodity boom’s average increase of two percent per year during 2000–2013. […]

How the Commodity Boom Helped Tackle Poverty and Inequality in Latin America

2019-03-14T10:21:04-04:00June 21, 2018|

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, […]

Migration and Remittances in Latin America and the Caribbean: Brain Drain Versus Economic Stabilization

2019-03-25T14:06:24-04:00June 29, 2017|

By Svetlana Cerovic and Kimberly Beaton

June 29, 2017

Versions in Español (Spanish) and Português (Portuguese)

People waiting to withdraw money in La Cruz, Costa Rica: emigrants from Latin America send home sizable remittances (photo: Juan Carlos Ulate/Reuters/Newscom)

Many people from Latin America and the Caribbean live and work abroad. Migrants have been motivated to leave their home country in search of better job opportunities and, in some cases, a […]

Trading Out of Trouble in Latin America

2019-03-27T14:22:28-04:00November 4, 2015|

By Natalija Novta and Fabiano Rodrigues Bastos

(Versions in Español and Português)

Growth in Latin America and the Caribbean is suffering a double whammy—economic activity has slowed down sharply and the medium-term outlook continues to deteriorate. It is therefore not surprising that policymakers across the region are eagerly searching for ways to revitalize growth.

One answer may be more trade—both within the region and with the rest of the world. Our new study analyzes the export performance in developing and emerging market regions over the past two decades to assess the potential for future export growth […]

To Hike or Not to Hike? Monetary Policy in Latin America During Fed Liftoff

2019-03-27T14:40:00-04:00October 21, 2015|

By Carlos Caceres, Yan Carrière-Swallow, and Bertrand Gruss

(Versions in Español and Português)

As the U.S. Federal Reserve prepares to raise policy rates for the first time in almost a decade, Latin America is in the midst of a sharp downturn with unemployment on the rise. In this context, many central banks across the region have kept interest rates low to support economic activity. But can monetary policy stay that way as global rates rise? What will the Fed liftoff imply for the region?

[…]

Raising Long-Run Growth in Latin America and the Caribbean—A Complex(ity) Issue

2019-03-27T16:08:47-04:00June 9, 2015|

By Fabiano Rodrigues Bastos and Ke Wang

(Versions in Español and Português)

Growth in Latin America and the Caribbean has weakened significantly over the last few years. Part of this weakness appears to be here to stay, and IMF economists have marked down medium-term growth projections. This story sounds eerily familiar, given the region’s past difficulties to improve its comparative growth performance.

Abstracting from the “golden decade” from 2003 to 2011, when rising commodity prices powered a strong expansion, why has the region been unable to sustain sufficiently high growth rates […]

A Watershed Moment for Latin America: Nine Takeaways from our High-Level Conference

2019-03-27T16:11:04-04:00June 5, 2015|

Alejandro WernerBy Alejandro Werner

(Versions in Español and Português)

Latin America has reached a critical moment. So much better off than two decades ago, and still facing deep-seated problems that get in the way of sustained strong growth and economic development. To better understand these problems from countries’ perspectives, and explore ways the IMF and others can help address them, we brought together experts from the region and beyond—central bankers, finance ministers, and academics—for a high-level conference in Washington, D.C. earlier this week.

Under the […]

Northern Spring, Southern Chills: Outlook for Latin America and the Caribbean

2019-03-27T17:47:26-04:00April 17, 2015|

Alejandro WernerBy Alejandro Werner

(Version in Español and Português)

Economic activity in Latin America and the Caribbean has been cooling down for several years, and the temperature in many places is still falling. Regional growth is now expected to dip below 1 percent in 2015—down from 1.3 percent in 2014. Apart from a short-lived recession during the global financial crisis, this would be the slowest rate of growth since 2002.

However, growth dynamics vary across the region, broadly along North-South lines. While spring may be in the air […]

(Yet) Another Year of Subpar Growth: Latin America and the Caribbean in 2015

2017-04-14T01:48:38-04:00January 21, 2015|

Alejandro WernerBy Alejandro Werner

(version in Español and Português)

The turn of the year usually brings a fresh dose of optimism. Yet, worries dominate across much of Latin America and the Caribbean today, as 2015 marks yet another year of reduced growth expectations. Regional growth is projected at just 1¼ percent, about the same low rate as in 2014 and almost 1 percentage point below our previous forecast. Challenging external conditions are an important drag for many countries. Still, it’s not too late for some […]

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