Unlocking Latin America’s Huge Potential

IMF Blog, December 2, 2014

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Unlocking Latin America’s Huge Potential

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Bibliographic details

• Authors: Christine Lagarde
• Published: December 2, 2014

Overview and purpose

• Author: Christine Lagarde
• Date: December 2, 2014
• Context: Previews participation in meetings in Peru and the Santiago Conference in Chile, and follow-up to preparations for the IMF–World Bank Annual Meetings to be held in Lima in October 2015.
• Objective: Discuss economic and social developments in Latin America and the Caribbean, showcase IMF collaboration with the region, and engage diverse stakeholders (policymakers, women leaders, youth, students, the press) in dialogue about inclusive growth.

Recent performance and resilience

• Over the past two decades, most countries in Latin America made "great strides," achieving strong growth supported by sound policies and well-managed economies.
• Performance during the 2009 global financial crisis: many countries recovered quickly without suffering their own crises, using policy responses that helped dampen the hit to growth and employment.

Growth projections and near-term challenges

• IMF projections for the region:
  • Latin America will grow by 1.3 percent in 2014
  • Latin America will grow by 2.2 percent in 2015
• Current challenges noted:
  • Growth continues to slow as global economic and financial conditions shift.
  • Economies are running up against capacity limits.
  • Declining commodity prices and rising global interest rates (moving up from "unusually low levels") will make progress on social and infrastructure demands more difficult.

Social progress and remaining gaps

• Poverty and inequality:
  • Significant advances in reducing poverty and inequality over the past decade.
  • About a decade ago, the proportion of people in poverty was "about 2.5 times" those in the middle class; today they are "about the same."
  • Despite the decline, inequality remains high relative to comparable economies elsewhere.
• Rising middle class:
  • Increasing demands on public services such as education, health care, and infrastructure.
  • Meeting these demands will be more difficult given the economic environment.

Policy emphasis and IMF engagement

• Latin America is committed to maintaining macroeconomic stability, which has been "hard won with better policies."
• The IMF’s approach at the Santiago Conference:
  • Listen and learn from a broad set of stakeholders.
  • Exchange views with top policymakers and civil society to inform policy dialogue.
• The two-day Santiago Conference will focus on three key themes:
  • changes in global and regional economic conditions;
  • social progress in Latin America and its implications for economic policy; and
  • the potential role of region-wide solutions to long-standing problems.

Call to participation

• Encourages public engagement in the dialogue and to follow discussions on the conference website.
• Invites contributions via Twitter using the hashtag #imfsantiago2014.

Source: Unlocking Latin America’s Huge Potential — Christine Lagarde, December 2, 2014.

Content in this bundle

• Liberar o enorme potencial da América Latina; 2 de dezembro de 2014
  • Liberar o enorme potencial da América Latina; 2 de dezembro de 2014 (Markdown version)
  • Liberar o enorme potencial da América Latina; 2 de dezembro de 2014 (PDF)