Latin American Economic Outlook 2023
Investing in Sustainable Development
Latin America and the Caribbean needs an ambitious and comprehensive investment agenda to embark on a stronger and more sustainable development trajectory. The 16th edition of the Latin American Economic Outlook proposes ways to make this possible through co-ordinated actions by policy makers, the private sector and international partners. It argues that to close existing investment gaps and overcome the region’s structural challenges, it is essential to scale up domestic and foreign investment. These investments should be a catalyst for better quality jobs and an upgraded production structure, harnessing the potential of LAC’s endowments and of the green and digital transitions. Better governance and information are key to promoting effective and efficient public and private investments. Public institutions are fundamental to aligning investments with national development strategies while building stronger social contracts. The report presents a series of options for financing this new investment agenda, including innovative debt instruments and a renewed role for development finance institutions. The report also highlights the importance of reinvigorated international partnerships across the investment agenda.
Also available in: Spanish
Chile
Poverty in Chile was at 8.1% in 2022, remaining below the Latin America and the Caribbean (LAC) average of 24.1%. Extreme poverty was at 2.1% in 2022, below the LAC average (8.3%). The Gini index was 44.9 in 2020, almost on par with the LAC average (44.8). Regarding investment and production transformation indicators, total investment in Chile increased from 24.1% of GDP in 2016 to 24.8% in 2022, remaining above the LAC average, which increased from 20.8% to 21.3% over the same period. Private investment slightly rose in Chile, from 20.9% of GDP in 2016 to 21.1% in 2019, above the LAC average (15.8% in 2019). Chile’s labour productivity, measured against output per employed person in the United States, remained almost unchanged, increasing from 41.3% in 2016 to 41.4% in 2023, substantially above the LAC average of 27.1% in 2023. The share of exports of high-tech products in total exported manufactured goods increased from 8.4% in 2016 to 12.4% in 2021, above the LAC average (7.2%). Positive perceptions of foreign direct investment (FDI), which declined across the LAC region, dropped significantly in Chile as well, from 68.1% in 2016 to 45.7% in 2020. Contrary to a declining trend in the region, Chile’s fiscal revenues increased from 20.2% of GDP in 2016 to 22.2% in 2021. Similar to the LAC average, environment-related tax revenues remained almost unchanged at 1.0% of GDP in 2021.
Also available in: Spanish
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