Regional Economic Outlook Update: Western Hemisphere Hemisphere Department
Western Hemisphere, October 11, 2013
Source details
- Canonical URL
- Regional Economic Outlook Update: Western Hemisphere Hemisphere Department
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Bibliographic details
- Published: October 11, 2013
- Series: Western Hemisphere
Growth outlook for Latin America and the Caribbean
- Growth in Latin America and the Caribbean (LAC) remains in low gear, reflecting a less supportive external environment and, in some cases, domestic supply-side constraints.
- The region’s output is projected to expand by 2¾ percent in 2013, with domestic demand remaining the main driver.
- The growth rate is expected to edge up to 3 percent in 2014 as external demand strengthens gradually, but will remain below the average growth rate of the last decade.
Policy recommendations
- Monetary policy:
- In countries with low inflation and anchored inflation expectations, monetary policy should be the first line of defense if downside risks to the baseline materialize.
- Fiscal policy:
- Fiscal consolidation remains appropriate for countries with tight capacity constraints or limited fiscal space.
- Fiscal consolidation will also help constrain the continued widening of current account deficits.
- Financial stability:
- Safeguarding financial stability is a key priority in an environment of tighter global financial conditions and increased asset price volatility.
Key contextual details
- Publication date: October 2013
- Regional focus: Western Hemisphere — Latin America and the Caribbean
Source: Regional Economic Outlook Update: Western Hemisphere Department (October 2013).
Content in this bundle
- Regional Economic Update—Latin America and the Caribbean, October 2013 (wreo1013)
- Regional Economic Update--Latin America and the Caribbean, October 2013