2022 Latin American and Caribbean Macroeconomic Report: From Recovery to Renaissance: Turning Crisis into Opportunity

Economic growth in Latin America and the Caribbean was stronger than expected in 2021 but waned at the start of 2022. High commodity prices due to the war between Russia and Ukraine will provide a boost to exporters, while imposing significant costs on commodity importers and pushing up inflation across countries. The ongoing conflict, together with policy normalization in advanced economies, carries significant risks for the region. Volatility in financial markets could depress investment and bring down growth further. Policymakers need to take urgent measures to boost inclusive growth. As minor fixes are unlikely to result in notable benefits, governments should consider more fundamental resets of policy frameworks. This report analyzes growth prospects, monetary policy, and external and financial sectors. The recommendations stress the need for a new architecture for both fiscal and labor market policies. Policymakers should seize the window of opportunity provided by the COVID-19 crisis and global security concerns to improve the outlook for the region.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Eduardo A. Cavallo
Language:	English
Published:	Inter-American Development Bank
Subjects:	Economy, Inflation, Coronavirus, Pandemic, Raw Material, Economic Development, Gross Domestic Product, Interest Rate, Labor, Labor Force, Fiscal Policy, Debt Management, Commodity Price, Oil Price, Capital Flow, Financial Sector, Labor Market, Informal Economy, Female Employment, GDP Growth, Poverty, Equality, E20 - Consumption Saving Production Investment Labor Markets and Informal Economy: General, E52 - Monetary Policy, E58 - Central Banks and Their Policies, F21 - International Investment • Long-Term Capital Movements, F32 - Current Account Adjustment • Short-Term Capital Movements, F34 - International Lending and Debt Problems, G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages, H20 - Taxation Subsidies and Revenue: General, H63 - Debt • Debt Management • Sovereign Debt, J20 - Demand and Supply of Labor: General, J46 - Informal Labor Markets, Latin America;Caribbean;Latin America and the Caribbean;Fiscal Deficit;Debt;Current Account;Trade;Oil;Brent;Banks;Financial Sector;Informality;Female Employment;Poverty;Inequality,
Online Access:	http://dx.doi.org/10.18235/0004180 https://publications.iadb.org/en/2022-latin-american-and-caribbean-macroeconomic-report-recovery-renaissance-turning-crisis
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