Análisis semestral de los hechos más relevantes en el período y desafíos para la región.

Embracing Economic Openness and Global Integration to Address Slow Growth and Development

The international context appears complex, with slow global progress, geopolitical divisions, and lingering pandemic effects. Rising global funding costs challenge emerging economies, and the Israel-Hamas conflict adds to global uncertainties. As policymakers anticipate encountering external headwinds rather than favorable conditions, the focus should shift away from relying on historical patterns of external factors to drive growth and should instead explore new opportunities. This presents a significant opportunity for Latin America and the Caribbean to enhance its trade links with emerging markets and substantially liberalize its economies, fostering integration with developed nations. This LMV Regional Report examines potential pathways for LAC countries to strengthen their trade partnerships with key economies and enhance their connections with the developed world, including the potential for OECD membership.

Perspectives 2023: Better than expected, but not so much

The first quarter of 2023 has shown favorable signs for the Latin American and the Caribbean (LAC) economy, with rising prices for key exports like food products and lower oil prices, along with moderating inflation in major economies. However, LAC countries face challenges such as high levels of public debt and the need for greater trade openness. Nearshoring presents a short-term opportunity, but the consolidation of democracy is necessary to fully capitalize on it. Recent elections have demonstrated the importance of democracy in achieving sustainable growth and development, especially for vulnerable citizens

Clouds on the Horizon, Opportunities Beyond

After two years of favorable external conditions, Latin America is now facing an unfavorable context of external factors, defined by a global growth slowdown, a hiking of international interest rates, and a reduction of global commodity prices.

Straw, Wood and Brick: Latin American Economies in the Context of Global Inflation

Latin America and the Caribbean (LAC) has been the most affected region during the COVID-19 pandemic. In spite of the fact that the recovery has been faster than originally expected due to a favorable context of external factors (i.e., low global interest rates and high international prices of relevant commodities), the gap between projected and actual growth still needs to be closed by means of structural reforms.

Tailwinds in the Short Run Coupled with Long Run Challenges

Latin America and the Caribbean has been the most affected region by the COVID-19 pandemic with the deepest economic activity contraction in 2020. However, the recent revision of growth forecasts indicates that 2021 will be better than expected, and the GDP gap relative to pre-pandemic levels could be closed earlier than expected.

Towards a Dual Agenda of Structural Reforms

The post-pandemic world will be very different from the one we knew. As will post-pandemic Latin America and the Caribbean (LAC).
The changes require deep reforms, very complex to implement. The undeniable acceleration to incorporate technology for automating processes will radically state the post-pandemic economic and social reality.