{
  "title": "Outlook for Latin America and the Caribbean: An Uneven Recovery",
  "publication": "Western Hemisphere, October 12, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/reo/wh/issues/2018/10/11/wreo1018",
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  "summary": "Publication date: October 2018",
  "sections": [
    {
      "heading": "Overview and context",
      "content": "- Publication date: October 2018\n- Regional backdrop: escalating trade tensions, tighter financial conditions, and volatile commodity markets have moderated and made the recovery more uneven across Latin America and the Caribbean (LAC)."
    },
    {
      "heading": "Key recent developments and country-specific dynamics",
      "content": "- Brazil and Mexico: recovery has slowed.\n- Argentina: recovery has come to a halt.\n- Central America: higher oil prices coupled with increased political uncertainty have dampened the near-term outlook in several economies.\n- Venezuela: there is still no end in sight to the economic and humanitarian crisis.\n- Andean economies: better terms of trade over the past year and improvements in consumer and business confidence have provided a fillip to growth prospects in some economies.\n- Caribbean: activity is recovering, reflecting the uptick in tourism owing to robust US and global growth."
    },
    {
      "heading": "Risks and financing constraints",
      "content": "- Downside risks to economic prospects in LAC have risen and potential for upside surprises has receded.\n- Major currencies have registered sharp declines.\n- Debt levels remain at relatively elevated levels in many economies in the region.\n- Scope for near-term countercyclical policy support is generally limited.\n- External financing needs are relatively high in some countries and capital flows are ebbing; policymakers should be prepared for further capital outflow pressures."
    },
    {
      "heading": "Policy guidance and near-term measures",
      "content": "- Exchange rate flexibility will remain key.\n- Foreign exchange market intervention could be appropriate under excessive volatility and market dislocation."
    },
    {
      "heading": "Medium-term reform priorities",
      "content": "- Increase saving and investment rates.\n- Reduce misallocation of resources.\n- Make labor markets more flexible and reduce informality.\n- Liberalize trade.\n- Improve the business climate.\n- Continue strengthening anti-corruption frameworks.\n\nSource: Outlook for Latin America and the Caribbean: An Uneven Recovery, October 2018.\n\n---\n\n Content in this bundle\n\n- Regional economic Outlook: Western Hemisphere - Background Papers; October 2018\n  - Regional economic Outlook: Western Hemisphere - Background Papers; October 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Regional economic Outlook: Western Hemisphere - Background Papers; October 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Regional Economic Outlook: Western Hemisphere Region - An Uneven Recovery; October 2018\n  - Regional Economic Outlook: Western Hemisphere Region - An Uneven Recovery; October 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Regional Economic Outlook: Western Hemisphere Region - An Uneven Recovery; October 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.\n- Modify your profile\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/publications/reo/wh/issues/2018/10/11/wreo1018"
    }
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    "Published: October 12, 2018",
    "Series: Western Hemisphere",
    "Publication date: October 2018",
    "Regional backdrop: escalating trade tensions, tighter financial conditions, and volatile commodity markets have moderated and made the recovery more uneven across Latin America and the Caribbean (LAC).",
    "Brazil and Mexico: recovery has slowed.",
    "Argentina: recovery has come to a halt.",
    "Central America: higher oil prices coupled with increased political uncertainty have dampened the near-term outlook in several economies.",
    "Venezuela: there is still no end in sight to the economic and humanitarian crisis.",
    "Andean economies: better terms of trade over the past year and improvements in consumer and business confidence have provided a fillip to growth prospects in some economies.",
    "Caribbean: activity is recovering, reflecting the uptick in tourism owing to robust US and global growth.",
    "Downside risks to economic prospects in LAC have risen and potential for upside surprises has receded.",
    "Major currencies have registered sharp declines.",
    "Debt levels remain at relatively elevated levels in many economies in the region.",
    "Scope for near-term countercyclical policy support is generally limited.",
    "External financing needs are relatively high in some countries and capital flows are ebbing; policymakers should be prepared for further capital outflow pressures.",
    "Exchange rate flexibility will remain key.",
    "Foreign exchange market intervention could be appropriate under excessive volatility and market dislocation.",
    "Increase saving and investment rates.",
    "Reduce misallocation of resources.",
    "Make labor markets more flexible and reduce informality.",
    "Liberalize trade.",
    "Improve the business climate.",
    "Continue strengthening anti-corruption frameworks.",
    "**Regional economic Outlook: Western Hemisphere - Background Papers; October 2018**",
    "**Regional Economic Outlook: Western Hemisphere Region - An Uneven Recovery; October 2018**",
    "[Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.](https://www.imf.org/en/email-subscription/index)",
    "[Modify your profile](https://www.imf.org/en/email-subscription/login)"
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