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Latin American Economic Outlook 2021

Working Together for a Better Recovery

image of Latin American Economic Outlook 2021

The Latin American Economic Outlook 2021: Working Together for a Better Recovery aims to analyse and provide policy recommendations for a strong, inclusive and environmentally sustainable recovery in the region. The report explores policy actions to improve social protection mechanisms and increase social inclusion, foster regional integration and strengthen industrial strategies, and rethink the social contract to restore trust and empower citizens at all stages of the policy‑making process. Moreover, it stresses the need to promote sustainable and adapted macro‑economic frameworks to finance the recovery, as well as the importance of renewing international co‑operation to support these policy actions. Finally, the publication includes three crucial cross‑cutting themes: climate change and the green recovery, the digital transformation, and gender.

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.

English Also available in: Spanish

Structural macro perspective and the path to recovery

The socio-economic impacts of the coronavirus (COVID-19) crisis have been dramatic in terms of income and social conditions. Although positive growth is expected for 2021, pre-crisis GDP per capita levels are not expected to be reached before 2023-24. In the short run, demand-side policies should continue to play a central role to ensure a strong and inclusive recovery. After summarising the international context the region faces, this chapter presents the economic performance and key factors affecting the pace and shape of the recovery in LAC. In particular, it focuses on the importance of fiscal policy actions. It also highlights the social consequences of the crisis and the importance of financing conditions to protect the most vulnerable populations and of targeting policies based on key dimensions, including informality at the household level.

English Also available in: Spanish

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