Several nation-states compose the entirety of Latin America: Central America, the Caribbean, and South America. While these countries are geographically close to one another in the same region, they actually have varying levels of economic complexities.
Overall, the Latin American economy is considered major performer as an export-based economy, but previous recessions led the region to a devastating slowdown. While their road to recuperation is already in sight, economic experts and investment firms suggest that the only way to fully recover is to find newer engines that can jumpstart economic growth and finally boost prosperity further into the future.
According to a recent report by the International Monetary Fund, the Latin America and Caribbean (LAC) region was predicted to enjoy growth by 1.1% in 2017. This year, the region is looking at a 1.8% of growth, and another 2.3% in 2019. The main drivers for these improvements are credited to LAC’s biggest economies in Argentina and Brazil. Additionally, Mexico is also doing its part, bringing in optimistic growth forecasts for the region, with Central America boasting a healthy pace of recuperation by 3.9% in 2017 alone.
There are still much to do in order to achieve more positive long-term effects, and these include focusing on investing, exports, savings, and most importantly, promoting the development of the private sector. Moreover, acknowledging fiscal and external imbalances should also be a priority not only to stabilize economic integration but also to strengthen it.
However, the biggest changes that are set to promote a huge leap in LAC’s economy, according to experts, is for these nations to address inequality and to invest in people, especially those who live in poverty.