Latin American Economic Outlook 2020
Digital Transformation for Building Back Better
The Latin American Economic Outlook (LEO) 2020 focuses on the role of digital transformation in helping to navigate through challenging times. The Covid-19 pandemic is having a profound impact on socio-economic conditions, accentuating the already complex scenario faced by a region with significant structural weaknesses. This unprecedented crisis comes at a time of high aspirations and reinforces the need to transform the very foundations of the development model in the region. The report explores how digital transformation can help to cope with the current socio-economic situation, boost productivity, strengthen institutions and achieve higher levels of inclusion and well-being. The LEO 2020 also highlights that international partnerships are fundamental to reaping the benefits of the digital transformation.
The LEO is a joint annual publication produced by the OECD Development Centre, the United Nations Economic Commission for Latin America and the Caribbean (UN ECLAC), the Development Bank of Latin America (CAF) and the European Union (EU). It is the first pillar of the EU Regional Facility for Development in Transition for Latin America and the Caribbean.
Also available in: Spanish
Structural macro perspective and the role of the digital transformation to overcome development challenges
The coronavirus (Covid-19) crisis has been an exceptional, unexpected and exogenous shock to Latin America and the Caribbean, where most of the countries were already suffering from anaemic or zero growth. The region confronts the crisis with structural challenges, including a vulnerable middle class, persistent inequalities, laggard productivity and constrained fiscal space. The persistence of structural bottlenecks caps the space for rapid recovery. In some countries, inequality reduction has stalled in the most unequal region in the world, and increases in poverty and indigence are expected in the context of the coronavirus (Covid-19) crisis. Against this scenario, innovative and effective actions have been implemented to contain the damage, but further efforts will be needed at the national and international level for a sustainable recovery. Digital transformation proved to be a useful tool during the pandemic, but only for some firms and citizens. If gaps in coverage, access and use are properly addressed, digital transformation will play an essential role in the economic recovery and holds the potential to help overcome the persistent challenges and spur more sustainable and inclusive development.
Also available in: Spanish
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