This blog was previously published in The World Post.
Talk about ‘growth’ in Latin America has become less upbeat today than a few years ago. That’s no surprise. For over a decade, average growth meant at least double the economic activity that we are seeing today.
The global commodities boom of the past decade has had an undeniable impact on Latin America and the Caribbean. Rich in minerals, forest and water, the region’s golden decade was boosted significantly by income from the extractives industry, especially oil, iron and copper.
Read parts 1 & 2
There’s good evidence that a country’s level of financial development affects the impact of volatility on economic growth, particularly so in less developed countries, as the charts below demonstrate
The fact is that a government can soften a recession by increasing spending (the counter-cyclical approach) to raise demand and output. If government reduces spending (the pro-cyclical approach), the likely result is a deeper recession.
- Organization of Eastern Caribbean States
- macroeconomic policy
- Financial Sector
- Latin America & Caribbean
- Virgin Islands, British
- Trinidad and Tobago
- St. Vincent and the Grenadines
- St. Lucia
- St. Kitts and Nevis
- Dominican Republic
- Antigua and Barbuda
- Macroeconomists for the Poor