World Bank – Latin America and The Caribean Economic Review Spring

The Latin America and the Caribbean region has made slow progress in addressing the imbalances caused by the pandemic, with inflation levels falling and interest rates beginning to decrease after four years of solid macroeconomic management. However, challenges remain in addressing fiscal imbalances, recovering lost earnings power, and reducing poverty. High interest rates have led to debt distress for households and firms, impacting growth rates. Structural issues and delays in reforms in infrastructure, education, regulation, and competition policy have hampered economic growth. The region also faces challenges from an aging workforce and increasing violence, which threatens investment attractiveness. The report discusses the region's recent social and macroeconomic evolution, highlighting the need for reforms to enhance growth through increased competition, investments in capabilities, and improvements in innovation systems.