Latin America, another lost decade

CESCE, Country Risk

The widespread cuts to growth forecasts for this year have revived voices suggesting that the region could face "another lost decade" in the period between 2015 and 2025.

Latin America faces the pandemic with some very small or no tax margins and at a time of great fragility after a year in which intense and prolonged social revolts in many countries have seriously penalized economic activity.

El World Bank points to a drop in regional GDP of 4,6% this year, a figure that is at the top of the range predicted by the Interamerican Development Bank (a collapse between 1,8% and 5,5%), which would represent the biggest economic setback in the region as far as the historical records of the organization based in Washington, even higher than the 2,5% decline in 1983—at the height of the Latin American debt crisis, which triggered the first lost decade—and that of the great recession (in 2009 the regional GDP barely fell by 1,9%).

El IMF, for its part, in updating its World Economic Outlook Report, published last week, figures the fall in the region's GDP at 5,2% with Mexico and Ecuador as the most affected (with declines of 6,6% and 6,3%, respectively).

The high dependence on the price of raw materials in both public and external accounts, the strong concentration of its exports in China and the US, the financial frailties that have accumulated over years of low interest rates, the poor quality of health services and the very high levels of informality are some of the factors that explain the dramatic fall predicted by the main international organizations.

Source: CESCE

Any questions about this news?

Talk to Coexia, the AI ​​of the foreign trade

Enter Make another general inquiry

International business service providers

Promotion Organizations

Barcelona Free Trade Zone

Barcelona Free Trade Zone The Barcelona Free Trade Zone Consortium positions itself as a…read more...

Suggested services:

• Industrial and Logistics Land
• International Networking
• B2B Events

Promotion Organizations

VUI – Single Window

The Single Window for Businesses (VUI) is positioned as a key resource for companies and the self-employed…read more...

Suggested services:

• Assistance with procedures
• International Certifications
• Incident Resolution

Promotion Organizations

Chamber of Spain

Spanish Chamber of Commerce The Spanish Chamber of Commerce positions itself as a fundamental corporation…read more...

Suggested services:

• Internationalization Programs
• Support for SMEs
• Chamber Network Abroad

View the complete supplier guide →