Countries in Latin America and the Caribbean have sought to develop deep and well-functioning domestic bond markets since the beginning of the 21st century—a reaction in part to the financial crises of the 1990s and their relationship to government borrowing abroad, mainly in foreign currencies. As a result, the outstanding level of marketable public debt issued under domestic … [Read more...] about Developing Domestic Bond Markets for Growth and Stability
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The Impact of Low Economic Growth and Inflation on Households: A Conversation with Eric Parrado, IDB Chief Economist
This article is part of an effort to make the concepts of our Latin American and Caribbean Macroeconomic Report, which at first sight may seem complex, more accessible to the general public. To explain what the drop in GDP suffered by Latin America and the Caribbean in 2020 as a result of the pandemic means in practical terms, Eric Parrado, Chief Economist and General … [Read more...] about The Impact of Low Economic Growth and Inflation on Households: A Conversation with Eric Parrado, IDB Chief Economist
Debt, Growth, and Interest Rates: Assessing Sustainability in Latin America and the Caribbean
Debt levels in Latin America and the Caribbean increased steadily during the last decade and soared in 2020 with the COVID-19 pandemic, reaching 72% of GDP. In response to the pandemic, countries mobilized considerable resources to support families and firms. Since 2020, debt ratios have declined as economies recovered and fiscal deficits were shaved. Still, with falling growth … [Read more...] about Debt, Growth, and Interest Rates: Assessing Sustainability in Latin America and the Caribbean
Preparing the Macroeconomic Terrain for Renewed Growth
Since 2020, the economies of the world have been hit by a series of severe shocks, most dramatically the COVID-19 pandemic and the Russian invasion of Ukraine. As a result, after growing around 3.9% last year, Latin America and the Caribbean region now faces considerably lower growth projections for 2023, with private forecasters predicting growth at around 1%. It also … [Read more...] about Preparing the Macroeconomic Terrain for Renewed Growth
The Elusive Quest for Growth: The Role of Trust
As Latin America and the Caribbean confronts one of the most severe economic downturns in its history, policymakers are looking ahead to what they must do in terms of fiscal and monetary policies to restore growth once the Covid-19 crisis passes. But one element that desperately needs more attention is the deep and chronic lack of trust in the region between citizens and … [Read more...] about The Elusive Quest for Growth: The Role of Trust