Latin America and the Caribbean rebound after two years in the red

Amid more favourable global conditions, Latin America and the Caribbean are headed for a mild economic recovery in 2017-2018. After two consecutive years of contraction, the region’s economy is expected to grow by one per cent in 2018. Most of this growth can be attributed to Argentina and Brazil, which have emerged from recession. As in the case of Africa, a stronger external demand, slightly higher commodity prices and favourable external financing conditions have spurred the growth. Domestically, falling inflation and looser monetary policy have also played a role. However, the region’s recovery remains shallow and uneven. Political uncertainty persists in several countries, fiscal consolidation is needed and structural barriers to growth remain. This includes inadequate infrastructure and weak labour productivity.

Read more in the October Monthly Briefing on the World Economic Situation and Prospects.