RESEARCH DEPARTMENT
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The IDB has researchers in many departments producing working papers on economic and social topics. Many of these documents constitute background research for the IDB’s flagship publication "Development in the Americas" prepared by the Research Department. In addition, the IDB finances and mentors studies conducted by other institutions in order to build knowledge and research capacity. All IDB working papers are peer reviewed and meet high editorial standards.

DIA: Dealing with Debt: Less Risk for More Growth in Latin America and the Caribbean

Dealing with Debt

Edited by Andrew Powell and Oscar Mauricio Valencia

  • Total debt in Latin America and the Caribbean has grown to US$5.8 trillion, or 117 percent of GDP. Public debt soared during the pandemic, and corporates issued substantial amounts to survive the crisis.
  • While taking on debt helped the region weather the pandemic, it is now weighing down its economy. If countries want to grow and reduce the possibility of a deeper debt crisis, they need to bring down debt to prudent levels.
  • To achieve prudent debt levels, policymakers can focus on better fiscal institutions, implementing fiscal consolidation, improving debt management, and providing well-targeted assistance to promising private firms.

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2022 LATIN AMERICAN AND CARIBBEAN MACROECONOMIC REPORT: From Recovery to Renaissance - Turning Crisis into Opportunity

2022 Macro Report

Coordinated by Eduardo Cavallo, Arturo Galindo, Victoria Nuguer and Andrew Powell

  • Economic growth in Latin America and the Caribbean was stronger than expected in 2021 but waned at the start of 2022. The surge in 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 mitigate risk and boost inclusive growth. As minor fixes are unlikely to result in notable benefits, governments should consider more ambitious resets of policy frameworks.

  • This report analyzes growth prospects, fiscal and monetary policy, and the outlook for the external sector. The recommendations stress the need for a new fiscal and labor market architecture. Policymakers should seize the window of opportunity provided by the crisis to improve the outlook for the region.

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LATEST BLOG POSTS

Dealing with Debt
Dealing with Debt

The Rise in Debt Total debt in Latin America and the Caribbean has risen to 5.8 trillion US dollars from under 3 trillion in 2008, or to 117% from around 60% of GDP. Total debt in the five largest economies is around 140% of GDP. While this is lower than in many advanced economies, emerging […]

The post Dealing with Debt appeared first on Ideas Matter.

Women and Urban Mobility: An Unfinished Agenda
Women and Urban Mobility: An Unfinished Agenda

Many factors lie behind observed gender gaps in labor market outcomes in Latin American and the Caribbean. But one remains largely invisible: transport and urban mobility. Women in the region have greater childcare responsibilities and do more unpaid work at home than their male partners. As a study we recently conducted in the metropolitan area […]

The post Women and Urban Mobility: An Unfinished Agenda appeared first on Ideas Matter.

The Universal Factors Behind Inflation in Latin America and the Caribbean
The Universal Factors Behind Inflation in Latin America and the Caribbean

With inflation in Latin America and the Caribbean running at its hottest in two decades, the issue of where that inflation comes from and what the region’s central banks might do differently has taken on great urgency. Our newly released study arrives at a hugely important conclusion: the overwhelming bulk of inflation in the region […]

The post The Universal Factors Behind Inflation in Latin America and the Caribbean appeared first on Ideas Matter.

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