Growth in Latin America and the Caribbean has weakened significantly over the last few years. Part of this weakness appears to be here to stay, and IMF economists have marked down medium-term growth projections. This story sounds eerily familiar, given the region’s past difficulties to improve its comparative growth performance.
Abstracting from the “golden decade” from 2003 to 2011, when rising commodity prices powered a strong expansion, why has the region been unable to sustain sufficiently high growth rates to catch up with more advanced economies? Part of the answer is Latin America’s modest success in branching out into more sophisticated—or complex—goods.
Filed under: Advanced Economies, Asia, Economic outlook, Economic research, Emerging Markets, Employment, Finance, Financial Crisis, Fiscal policy, Government, growth, IMF, International Monetary Fund, Latin America, Reform | Tagged: Brazil, Caribbean, commodiity prices, commodity exports, education, infrastructure, investment, Latin America, macroeconomic stability, Mexico, Regional Economic Outlook: Western Hemisphere, trade | Leave a comment »