Benchmarking the Determinants of Economic Growth in Latin America and the Caribbean

Produced by: 
The World Bank
Available from: 
December 2014
Paper author(s): 
Jorge Thompson Araujo
Markus Brueckner
Mateo Clavijo
Ekaterina Vostroknutova
Konstantin M. Wacker
Topic: 
Macroeconomics - Economic growth - Monetary Policy
Fiscal Policy - Public and Welfare Economics
Year: 
2015

The Latin America and the Caribbean region (LAC) has seen a “decade of convergence”. During the last decade, LAC countries have exhibited high growth rates and recovered quickly after the global financial crisis. The region benefited from favorable external conditions, in particular high commodity prices, and relatively loose financial conditions, especially in the United States. LAC had considerably lost ground vis-à-vis US income levels from 1980 until the early 2000s, but has converged somewhat to the US level since. Growth in LAC was thus not only higher in this period than before but also higher than in the United States (and many advanced economies), hence constituting a ‘decade of convergence’.

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