Fiscal Positions in Latin America : Have They Really Improved?

Author/Editor:

Jeronimo Zettelmeyer ; Ivanna Vladkova Hollar

Publication Date:

May 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Fiscal performance in Latin America looks much improved this decade compared to the 1980s or 1990s. Is this a "structural" improvement or likely to be transitory? This paper answers this question by estimating the relationship between non-commodity revenue and the economic cycle, and evaluating commodity revenues using alternative medium term commodity price projections. The main result is that structural revenues have indeed improved as a share of GDP, and structural primary balances are currently in surplus in many Latin American countries. However, the magnitude of these improvements is uncertain, in part due to uncertainty about the commodity price outlook.

Series:

Working Paper No. 08/137

Subject:

English

Publication Date:

May 1, 2008

ISBN/ISSN:

9781451869965/1018-5941

Stock No:

WPIEA2008137

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

30

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