As 2019 draws to a close, Latin America and the Caribbean faces at least four big challenges. First, growth this year is well below potential. Second, potential growth is low. Third, the region remains subject to large shocks. And fourth, despite recent gains, inequality remains high and aspirations are outstripping the meagre outlook, contributing to protests across the region … [Read more...] about Towards Inclusive Growth in Latin America and the Caribbean
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A New Trade World: Routes for Latin America and the Caribbean to Grow
It never rains but it pours sometimes seems to be just too appropriate a motto for Latin America and the Caribbean. Just as Argentina and Brazil appear set to post positive growth this year, uncertainty regarding global protectionism and the prospects of higher U.S. interest rates could dampen growth prospects across the region, as explained in the 2017 IDB Latin American and … [Read more...] about A New Trade World: Routes for Latin America and the Caribbean to Grow
Living in the Age of Uncertainty
As Borges famously remarked, “Reality is not always probable, or likely.” So it seems in Latin America and the Caribbean: of all possible outcomes the one we have lived through is not the one many would have predicted. Moreover, as we look to the future, current forecasts display marked differences across countries and are subject to very high uncertainty. As this year … [Read more...] about Living in the Age of Uncertainty
Latin America’s Macroeconomic Update: Looking Up
At the end of the third quarter, the growth forecast for Latin America and the Caribbean was an estimated -0.6% for 2016. For the first time since 1982-83, the region is expected to post two consecutive years of negative growth. However, looking beyond the numbers there is some good news in this latest report. To begin with, things looked considerably worse earlier in the … [Read more...] about Latin America’s Macroeconomic Update: Looking Up
Democracy Does Not Cause Growth
Does democracy cause more economic prosperity and growth? This question dates back to Plato and Aristotle’s debate regarding which form of government brings more political and economic gain to society. However, after more than two millennia, there seems to be no clear consensus about whether democracy (in and of itself) delivers more economic growth than autocratic forms of … [Read more...] about Democracy Does Not Cause Growth