September 1, 2013
Over the past 25 years, Latin America has struggled to achieve a firm basis for sustained economic growth.
This is not to deny considerable progress in many areas over this period: macroeconomic performance, including a successful battle against inflation; greater financial resiliency; and, increased free trade and integration with the rest of the world.
But such advances have not been enough to move Latin America beyond the mediocre economic growth that characterizes the so-called middle-income trap, where growth plateaus amid a loss of competitiveness. Moreover, the region has fallen behind other emerging markets. (Figure 1)
The 2008/9 global economic crisis affected L
Latin America’s advances in recent years have not been enough to move it beyond a mediocre rate of growth. It will take bold efforts for the region to escape the so-called middle-income trap over the next quarter century. By Claudio Loser