The Rise in Debt Total debt in Latin America and the Caribbean has risen to 5.8 trillion US dollars from under 3 trillion in 2008, or to 117% from around 60% of GDP. Total debt in the five largest economies is around 140% of GDP. While this is lower than in many advanced economies, emerging economies face higher interest rates, greater risks and a larger drag on growth from … [Read more...] about Dealing with Debt
During the peak of the COVID-19 crisis, governments in Latin America and the Caribbean aided firms and households with support packages coordinated with central bank monetary policy. For many, liquidity injections and flexible financial sector supervision helped ease the pain. While many small firms closed their doors during the crisis, surprisingly few larger … [Read more...] about Avoiding Economic Long-COVID: Policies to Support Firms and Workers in Latin America and the Caribbean
After a robust economic recovery last year from the lows of the pandemic, Latin America and the Caribbean faces strong headwinds from potential new coronavirus variants, inflation-fighting efforts in advanced economies, and the war between Russia and Ukraine that could depress world growth and even push the region into recession by 2023. Riding a wave of strong growth … [Read more...] about From Pandemic to Inflation and War: Challenges for Policymakers in Latin America and the Caribbean
The last two years have been a roller coaster in terms of economic performance in Latin America and the Caribbean. As detailed in the 2021 Latin American and Caribbean Macroeconomic Report, the 7% loss in GDP in 2020 was the worst recession in a single year suffered by the region since the struggles for independence in the first half of the 19th century. By contrast, 2021 has … [Read more...] about Another Year of Living Dangerously?
On August 14, 2021, a 7.2 magnitude earthquake struck Haiti, gravely affecting the Departments of Sud, Grand'Anse, and Nippes. More than 2,200 people were killed, and houses, healthcare facilities and schools were destroyed. Rescue and relief responses were hampered by blocked roads, a 5.8 magnitude earthquake that hit the same area the very next day and subsequent aftershocks. … [Read more...] about Estimating the Potential Economic Impact of Haiti’s 2021 Earthquake