{
  "title": "Building on Latin America's Success",
  "publication": "IMF Blog, December 6, 2012",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2012/12/06/building-on-latin-americas-success",
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  "summary": "Author: Christine Lagarde; date: December 6, 2012.",
  "sections": [
    {
      "heading": "Visit and outlook",
      "content": "- Author: Christine Lagarde; date: December 6, 2012.\n- Context: Second visit to the region since November 2011; upcoming meetings in Colombia and Chile and participation in the meeting of the Community of Latin American and Caribbean States in Viña del Mar.\n- Purpose: Discuss challenges of sustaining the region’s transformation with policymakers, business leaders, students, and civil society; engage with women leaders in Colombia and students in Chile."
    },
    {
      "heading": "Recent performance and near-term projections",
      "content": "- Regional growth slowed from 4½ percent in 2011 to an estimated 3¼ percent this year.\n- The region is projected to expand by about 4 percent in 2013, broadly in line with its potential.\n- Commodity exporters supported by the double tailwinds of high commodity prices and favorable external financing conditions.\n- Global factors posing downside risks:\n  - Policy slippages in advanced economies could weigh on Latin America.\n  - A fiscal cliff-spurred recession in the United States would affect Mexico, Central America, and the Caribbean due to strong trade, tourism, and remittances ties.\n  - A deepening of the crisis in Europe could heighten risk aversion and lead to a sudden drop in external financing flows.\n  - Continued robust growth in Asia in the medium term is critical to support the region’s strong commodity exports."
    },
    {
      "heading": "Policies to strengthen resilience",
      "content": "- Fiscal policy:\n  - Many countries have higher debt levels and generally weaker fiscal balances than before 2008; priority remains strengthening fiscal positions.\n  - Policymakers should avoid the temptation to use fiscal policy to support demand where private domestic demand remains very strong.\n  - Not an unconditional call for consolidation: if global risks materialize and private demand slows sharply, fiscal stimulus could be considered in countries not facing financing constraints.\n- Monetary policy:\n  - Monetary policy should continue to act as the first line of defense in case of slowing demand.\n- Capital flows and financial stability:\n  - Large and potentially volatile capital flows continue to present a challenge.\n  - The Fund’s thinking has evolved: a variety of tools could be useful in dealing with capital flows.\n  - Managing inflow surges or disruptive outflows requires:\n    - Sound macroeconomic policies.\n    - Strong financial supervision and regulation.\n    - In some cases, capital flow management measures.\n  - With credit growing briskly in many countries, policymakers need to balance vigilance to financial sector excesses while harnessing benefits of capital flows."
    },
    {
      "heading": "Making growth more inclusive and productive",
      "content": "- Structural challenges:\n  - Boosting productivity and competitiveness is critical and a longstanding weakness in the region.\n  - Required policy actions include increased investment in high-quality infrastructure and education, improved tax and regulatory structure, and export diversification.\n- Equity and social outcomes:\n  - Growth must be more broadly shared; more equal growth is also more lasting growth.\n  - Latin America has made significant progress in improving social outcomes, but more needs to be done.\n  - Better access to quality education is necessary to reduce inequality and equip young people with skills for an integrated and rapidly changing world.\n- Timing:\n  - Reforms take time; countries should act now while conditions are generally favorable."
    },
    {
      "heading": "Engagement and expectations",
      "content": "- The author is eager to discuss these issues with regional policymakers and stakeholders in Chile and Colombia.\n- Hope: Latin America will continue to rise to the challenge of ensuring lasting prosperity and stability for all.\n\nSource: Building on Latin America's Success, Christine Lagarde, December 6, 2012.\n\n---\n\n\n References\n\n- Colombia\n- Chile\n- capital flows\n\nSource: https://www.imf.org/en/blogs/articles/2012/12/06/building-on-latin-americas-success"
    }
  ],
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    "Authors: Christine Lagarde",
    "Published: December 6, 2012",
    "Author: Christine Lagarde; date: December 6, 2012.",
    "Context: Second visit to the region since November 2011; upcoming meetings in Colombia and Chile and participation in the meeting of the Community of Latin American and Caribbean States in Viña del Mar.",
    "Purpose: Discuss challenges of sustaining the region’s transformation with policymakers, business leaders, students, and civil society; engage with women leaders in Colombia and students in Chile.",
    "Regional growth slowed from 4½ percent in 2011 to an estimated 3¼ percent this year.",
    "The region is projected to expand by about 4 percent in 2013, broadly in line with its potential.",
    "Commodity exporters supported by the double tailwinds of high commodity prices and favorable external financing conditions.",
    "Global factors posing downside risks:",
    "Fiscal policy:",
    "Monetary policy:",
    "Capital flows and financial stability:",
    "Structural challenges:",
    "Equity and social outcomes:",
    "Timing:",
    "The author is eager to discuss these issues with regional policymakers and stakeholders in Chile and Colombia.",
    "Hope: Latin America will continue to rise to the challenge of ensuring lasting prosperity and stability for all.",
    "[Colombia](http://www.imf.org/external/country/COL/index.htm)",
    "[Chile](http://www.imf.org/external/country/CHL/index.htm)",
    "[capital flows](http://www.imf.org/external/pubs/ft/survey/so/2012/POL120312A.htm)"
  ],
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  "generatedAtUtc": "2026-08-28T03:09:19.381Z"
}