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
Mexico
Poverty in Mexico decreased from 37.6% in 2016 to 28.6% in 2022, remaining above the Latin America and the Caribbean (LAC) average of 24.1%. Similarly, extreme poverty fell from 8.4% in 2016 to 6.2% in 2022, below the LAC average (8.3%). The Gini index decreased from 47.7 in 2016 to 45.4 in 2020, above the LAC average (44.8). Regarding investment and production transformation indicators, total investment in Mexico was at 21.2% in 2022, similar to the LAC average of 21.3% over the same period. Private investment represented 15.0% of GDP in 2019, slightly below the LAC average (15.8% of GDP). Mexico’s labour productivity, measured against output per employed person in the United States, decreased from 38.2% in 2016 to 32.7% in 2023 yet remains above the LAC average of 27.1% in 2023. The share of exports of high-tech products in total exported manufactured goods represented close to 20% in 2021, substantially above the LAC average (7.2%). Positive perceptions of foreign direct investment (FDI), which declined across the LAC region, fell from 59.3% in 2016 to 54.3% in 2020. In contrast to a decline in the LAC average, tax revenue in Mexico increased slightly from 16.6% to 16.7% of GDP. Environment-related tax revenues decreased from 1.6% of GDP in 2016 to 1.0% in 2021 but are still slightly above the LAC average (0.9% of GDP in 2021).
Also available in: Spanish
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