Dealing with Debt: Less Risk for More Growth in Latin America and the Caribbean
ISBN print
9781597825290
Peer Reviewed
Date issued
Jan 2023
Online Content
Subject
Economy;
Gross Domestic Product;
Financial Bond;
Bank Loan;
Monetary Policy;
Macroeconomy;
Public Debt;
Investment;
Interest Rate;
Pandemic;
Coronavirus;
Fiscal Policy;
Debt Management;
Liquidity;
Small Business;
Finance;
Public Debt Management
JEL code
E44 - Financial Markets and the Macroeconomy;
E61 - Policy Objectives • Policy Designs and Consistency • Policy Coordination;
E62 - Fiscal Policy;
F34 - International Lending and Debt Problems;
H62 - Deficit • Surplus;
H63 - Debt • Debt Management • Sovereign Debt;
H68 - Forecasts of Budgets, Deficits, and Debt;
H81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts;
H87 - International Fiscal Issues • International Public Goods;
O43 - Institutions and Growth
IDB series
Development in the Americas
Category
Books
Debt has risen around the world, and Latin America and the Caribbean is no exception. Total debt has grown to US$5.8 trillion, or 117 percent of GDP, for the region and as much as 140 percent of GDP for its five largest economies. Public debt soared to over 70 percent of GDP during the pandemic, and corporates issued substantial amounts to survive the crisis. While the spending that led to this debt helped the region weather the pandemic, it is now weighing down the economy. This book examines the rise in debt in Latin America and the Caribbean and offers recommendations to policymakers to ensure debt is used wisely, avoid the harmful impacts, manage high debt levels well, and bring down debt where it is too high. It is hoped that the analyses and policy suggestions in this volume contribute to successfully confronting the challenges, lowering risk, boosting growth, and improving living standards across the region and beyond.
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