Regional Economic Outlook: Western Hemisphere Hemisphere Department
Western Hemisphere, April 24, 2014
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- Regional Economic Outlook: Western Hemisphere Hemisphere Department
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Bibliographic details
- Published: April 24, 2014
- Series: Western Hemisphere
Key findings and outlook
- Growth across Latin America and the Caribbean is expected to remain subdued at 2½ percent in 2014.
- The firming recovery in the advanced economies will support export activity.
- Positive impulses from advanced-economy recovery are likely to be offset in many countries by:
- the impact of lower commodity prices,
- tighter external financing conditions,
- domestic supply bottlenecks.
Downside risks
- Renewed volatility in financial markets.
- A sharper-than-expected decline in commodity prices.
Policy implications and recommendations
- Preserve credible policy frameworks and ensure sufficient buffers to cope with adverse shocks.
- Fiscal policy: a neutral to tighter stance will be appropriate in most countries.
- External volatility defenses:
- Exchange rate flexibility.
- Proactive supervision of the financial system.
- To boost medium-term growth prospects:
- Raise infrastructure investment.
- Improve educational outcomes.
- Enhance the business environment.
Publication note
- April 2014
Regional Economic Outlook: Western Hemisphere — April 2014.
Content in this bundle
- Regional Economic Outlook: Western Hemisphere - Rising Challenges; April 2014