2013 Latin American and Caribbean Macroeconomic Report: Rethinking Reforms: How Latin America and the Caribbean Can Escape Suppressed World Growth

Mar 2013
Global growth projections have waned since last year and growth may be suppressed below potential for several years to come. Lower global growth will, all things being equal, imply lower growth in Latin America and the Caribbean. At the same time, clear limits to the potential use of monetary and fiscal policy measures pose another constraint. Consequently, countries should consider further structural reform measures to enhance economic prospects and to escape suppressed global growth. If all countries pursue reforms to enable growth to accelerate by 1.5% on average, then the effect on the region as a whole may reach 2.3% additional growth per annum. The 2013 Latin American and Caribbean Macroeconomic Report presents evidence of great potential to enhance growth in the region by reallocating existing resources.