Interview with Alejandro Werner on the Latest Economic Developments in Latin America
To boost the economic recovery and create more jobs, the region will need to rely on domestic drivers of growth, like consumption and investment.
In a wide-ranging interview with Alejandro Werner, the head of the IMF’s Western Hemisphere Department, we discussed the report’s findings, the recent social unrest in the region, as well as the latest developments in Argentina and Ecuador.
The Regional Economic Outlook last year looked at the evolution of inequality and poverty in the region. How has it evolved since then and do governments have the right policies in place to tackle it?
Our study last year was based on data going up to 2015. We have yet to take a closer look at more recent data to make a more definitive assessment on how income inequality and poverty have evolved since then. But, what is clear from data coming out in several countries, is that with slowing growth for the region as a whole over the past 3-4 years, progress in fighting poverty and inequality has also slowed down and possibly even reversed in some countries. This poses a significant challenge. High levels of inequality and lack of economic opportunity continue to be a source of discontent among the population and ultimately hurt economic growth.
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