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. […]
New Index Tracks Trade Uncertainty Across the Globe
By Hites Ahir, Nicholas Bloom, and Davide Furceri
Rising trade uncertainty is cited as a driving factor for “sluggish global growth” in the current issue of the IMF’s World Economic Outlook, which describes the state of the world economy. […]
Chart of the Week: Words Count for Central Bank Communications in Latin America
By Juan Yepez
October 15, 2018
Effective central bank communications are essential in guiding market expectations (photo: lionvision/iStock)
When it comes to central banks in Latin America, sometimes words can speak louder than actions. […]
Reduced Speed, Rising Challenges: IMF Outlook for Latin America and the Caribbean
(Version in Español and Português)
The prospects for global growth have brightened in recent months, led by a stronger recovery in the advanced economies. Yet in Latin America and the Caribbean, growth will probably continue to slow, although some countries will do better than others. We analyze the challenges facing the region in our latest Regional Economic Outlook and discuss how policymakers can best deal with them.
The Outlook for Latin America and the Caribbean in 2014
(Version in Español, Português)
Looking to the year ahead, how do we see the global economic landscape, and what will this mean for our region? This question is especially on people’s minds today, given the risks of deflation in advanced economies and of sustained turbulence in emerging markets.
Despite these risks, we expect that the region will grow a little faster than last year—increasing from 2.6 percent in 2013 to 3 percent in 2014. Stronger global demand is one part of the story, but not the whole story; volatility is likely to be a significant feature of the landscape ahead. And regional growth rates will still be in low gear compared to historical trends, and downside risks to growth remain. So, let’s start with the global scene.
Latin America: Riding the Global Financial Waves
Simulations show that despite increasing financial integration, output costs associated with global financial shocks in Latin America have declined in the past 15 years. Of course, the progress made so far does not make the region immune, but has helped it to ride more safely through the recent global financial waves. As we’ve pointed out previously, the region should take precautions in case of a bigger global downturn. But so far it can take credit for its hard work on the policy front.