The Research Department generates innovative ideas that support the strategic policy agenda of the IDB and its member countries to achieve inclusive and sustainable economic and social development in Latin America and the Caribbean. To maximize the impact of its research, we carry out activities that serve as inputs to bank departments, governments, the academic community and public opinion in the region.
We advise management on economic and development issues, conducts research and analysis on macro- and microeconomic trends, and oversees development of the IDB’s quantitative and analytical databases. It dons a team of researchers with excellent academic credentials, superior research and policymaking experience, and expertise in different areas.
- Latin America and the Caribbean needs to implement macroeconomic policies to lower inflation and mitigate the impacts of an adverse global context in 2023.
- A baseline scenario sees the region growing by 1% in 2023 after better-than-expected growth of 3.9% in 2022. Growth is predicted to reach 1.9% in 2024.
- Countries are facing a triple social, fiscal and growth challenge that is limiting their development and that of their population. They have the tools to address this challenge if they make the appropriate policy choices.
- 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.
- Migration Brings Both Challenges and Opportunities for Cities: Migrants arriving in Latin American and Caribbean cities can contribute to economic growth and development by bringing their ideas, culture, skills, and labor. However, they may also pose challenges related to housing, employment of low-skilled workers, and the strain on public services.
- Policymakers Should Focus on Maximizing Migration Benefits: To harness the potential of urban migration, policymakers should prioritize policies that promote migrants' contributions to local productivity growth, improve housing availability, and mitigate potential negative impacts, while considering the specific context and needs of both migrant and resident populations.
- Rethinking Urban Migration for Long-lasting Local Economic Development: Embracing urban migration and effectively integrating migrants to the local economy can lead to long-term economic benefits for cities, fostering innovation, productivity, and competitiveness. This not only benefits migrants but also enhances the well-being of local residents, especially those in vulnerable situations, contributing to the broader community's prosperity.
During the COVID-19 pandemic, governments in Latin America and the Caribbean spent generously to support families, firms and banks, helping to ease the economic pain but also pushing public debt well above historic levels.
The events of the past three years have put low- and middle-income countries in Latin America and the Caribbean in a bind.
Remittances, or the money sent by migrants to their home countries, have always played a crucial role in the economies of Latin America and the Caribbean.