Macroeconomic prospects for Latin America and the Caribbean

Latin America must return to the path of strong economic inclusive growth. The prolonged economic slowdown in the region confirms that potential growth is weaker than previously expected. This evolution will test the robustness of the socio-economic progress achieved in the previous decade, especially the strong reduction in poverty levels and the emergence of a middle class. This chapter assesses Latin America’s growth prospects in a more challenging international environment and explores its consequences on the region’s labour markets and key socio-economic indicators such as poverty and inequality. In addition, it analyses economic policy options with an emphasis on investment in infrastructure and skills to boost inclusive growth under a sustainable and credible fiscal framework.