Back to The Productivity Puzzle

Where will Latin America’s growth come from?

Back to The Productivity Puzzle

Where will Latin America’s growth come from?

Over the past 15 years, Latin American economies have, on average, grown faster than those of developed regions but still lagged far behind the growth of other developing economies. Now growth is coming under further threat from declining fertility rates, an end to the commodity boom, and the risk of increased protectionism.

The imperative is to forge a broad agenda that removes obstacles to competitiveness, promotes the adoption of digital and automation technologies, addresses labor-market pressures, and raises investment in long-term drivers of productivity.

Exhibit

Productivity growth has been weak in Latin America; most of its GDP growth comes from employment growth.

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