Office of the Chief Economist, Latin America and the Caribbean

This event took place on April 4, 2023

Latin America and the Caribbean has proved relatively resilient to the rising uncertainty in the global economy. However, over the last two decades growth rates have remained insufficient to reduce poverty and defuse social tensions. New opportunities in nearshoring and the global shift toward green production and renewable energy could help the region better integrate with the rest of the world and find paths for sustainable and inclusive growth.

William Maloney, Chief Economist for Latin America and the Caribbean, along with high-level experts, discussed in this conversation the new growth opportunities emerging in the global economy and how the region can actively engage to drive inclusive and sustainable development.

The event, in which the new regional economic analysis "The Potential of Integration: Opportunities in a Changing Global Economy" was launched, aimed to bring together key stakeholders who discussed strategies to overcome obstacles for greater global integration and trade, attract foreign capital, and leverage the region’s comparative advantages. 

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Latin America and the Caribbean economies have recovered to their pre-pandemic levels and the region has regained some sense of normalcy, but economies need to be reignited in order to avoid a new low-growth cycle. Social and infrastructure investments can be key drivers of growth and shared prosperity, according to a new World Bank report, "New Approaches to Closing the Fiscal Gap."

The report estimates regional GDP will grow by 3.0 percent in 2022, a higher than previously expected rate due to rising commodities prices.

However, strong global uncertainty as a result of the war in Ukraine, higher interest rates in developed countries and the persistent inflationary pressures will impact economies in the region. Low growth rates of 1.6 and 2.3 are expected in 2023 and 2024, respectively, similar to the lackluster levels of the decade of 2010 and insufficient to achieve significant progress in reducing poverty. Inflation, while for most countries is at OECD levels, will require continued efforts to reduce to previous target levels.

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 Economies in Latin America and the Caribbean (LAC) are on track to recover from the COVID-19 crisis, but the scars of the pandemic remain and the need for a more dynamic, inclusive and sustainable growth is ever more urgent, according to a new World Bank report, “Consolidating the Recovery, Seizing Green Growth Opportunities”.

Following a 6.9 percent rebound in 2021, regional GDP is expected to grow 2.3 percent this year and a further 2.2 in 2023, with most countries reversing the GDP losses from the pandemic crisis. However, these modest projections place regional performance among the lowest in the world at a time when the region faces important uncertainties as new variants of the virus may appear, inflation pressures mount and the war in Europe threatens the world recovery. In fact, regional growth projections have been revised downward by 0.4 percent after the Russian invasion of Ukraine.

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What are the latest developments in the informality literature in the Latin America and the Caribbean region? What are the lessons and the challenges going forward?  Join the discussion in a 2-day workshop, with top academic researchers and learn about the lessons we have learned and the open questions. This workshop was hosted by the Chief Economist Office for Latin America and the Caribbean Region at the World Bank and organized jointly with the University of Maryland and the LACEA Labor Network. 

You can check the agenda, content of the sessions and information about the speakers here.