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
Argentina
Poverty in Argentina increased from 21.5% in 2016 to 30.1% in 2022, above the Latin America and the Caribbean (LAC) average of 24.1%. Extreme poverty also increased, from 2.9% in 2016 to 3.9% in 2022, yet remained below the LAC average (8.3%). The Gini index remained unchanged at 42.0 between 2016 and 2021, also below the LAC average (44.8). Regarding investment and production transformation indicators, total investment in Argentina increased from 14.3% of GDP in 2016 to 17.3% in 2022 but remained below the LAC average, which increased from 20.8% to 21.3% over the same period. Private investment, however, decreased slightly, from 8.0% of GDP to 7.7%, well below the LAC average (15.8% in 2019). Argentina’s labour productivity, measured against output per employed person in the United States, decreased from 40.7% in 2016 to 34.9% in 2023, remaining above the LAC average of 27.1% in 2023. The share of exports of high-tech products in total exported manufactured goods declined in the country from 9.0% in 2016 to 4.4% in 2021, below the LAC average (7.2%). Positive perceptions of foreign direct investment (FDI), which declined across the LAC region, also fell in Argentina, from 59.3% in 2016 to 44.3% in 2020. The country’s tax revenue decreased slightly from 30.7% of GDP in 2016 to 29.1% in 2021, still significantly above the regional average of 21.5%. Environment-related tax revenues decreased from 2.1% of GDP in 2016 to 1.1% in 2021.
Also available in: Spanish
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