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Fiscal Adjustment in Latin America and the Caribbean

Author

Listed:
  • Guillermo Vuletin
  • Carlos A. Vegh
  • Daniel Riera-Crichton
  • Diego Friedheim
  • Luis Morano
  • José Andrée Camarena
  • Guillermo Vuletin

Abstract

After a growth slowdown that lasted six years, the Latin America and the Caribbean (LAC) region has finally turned the corner and resumed growth at a modest rate of 1.1 percent in 2017 and 1.8 percent expected in 2018. This reflects a more favorable external environment, particularly a recovery in commodity prices. In spite of the benign external environment, most LAC countries still face a fragile fiscal situation. While gradual fiscal adjustments have started in several countries, most countries are still running fiscal deficits and debt levels are high. Further fiscal consolidation is needed to preserve the substantial gains achieved by the region in recent times, in terms of lower inflation, less poverty and inequality, and inclusive growth. This Semiannual Report analyzes the complex decisions regarding fiscal adjustment policies.

Suggested Citation

  • Guillermo Vuletin & Carlos A. Vegh & Daniel Riera-Crichton & Diego Friedheim & Luis Morano & José Andrée Camarena & Guillermo Vuletin, 2018. "Fiscal Adjustment in Latin America and the Caribbean," World Bank Publications - Reports 29666, The World Bank Group.
    • Handle: RePEc:wbk:wboper:29666
    Note: ISBN 978-1-4648-1290-3
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    References listed on IDEAS

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