Global economic fundamentals appear to be strong. Yet, Latin America and the Caribbean is expected to grow at rather mediocre rates in the coming years. Given recent projections, the region’s share of global GDP will continue to decline. In last year's Latin America and Caribbean Macroeconomic Report, Routes to Growth in a New Trade World, we focused on the benefits of deeper … [Read more...] about Forthcoming IDB Report: A Mandate to Grow
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Macroeconomic Challenges for Latin America and the Caribbean
As the October 2017 meetings in Washington wind down, the good news is that Latin America and the Caribbean is out of recession and set to grow at 1.2% this year. Only three countries (Suriname, Trinidad and Tobago and Venezuela—of the 26 borrowing IDB members) will post negative growth, as opposed to seven countries last year (the other four in recession last year were … [Read more...] about Macroeconomic Challenges for Latin America and the Caribbean
Can Latin America’s Engagement with China Deepen?
In November 2016, China's Ministry of Foreign Affairs released a white paper to guide its relationship with Latin America and the Caribbean through the end of 2019. The paper, encompassing the full spectrum of relationships between the two regions, emphasized that China had entered a "new phase of comprehensive collaboration" with Latin America and the Caribbean and sought to … [Read more...] about Can Latin America’s Engagement with China Deepen?
When Too Much External Borrowing to Finance Investment Gets Dangerous
Life is full of people who never save, spend like sailors, and find from one day to the next that they’ve maxed out on their credit cards and must cut back on their lifestyle and even long-term investments like their children’s education. Countries are similar. Nations that don’t save sufficiently and finance investment with borrowing from abroad can suffer catastrophes when … [Read more...] about When Too Much External Borrowing to Finance Investment Gets Dangerous
Making Saving a State Policy
Over the last three decades, Chile has led the way in promoting greater national savings in Latin America and the Caribbean. Beginning in the early 1980s with a pension reform that introduced mandatory savings through a system managed by the private sector, the country has implemented numerous measures that have boosted its savings rate. Privatizations were carried … [Read more...] about Making Saving a State Policy