Mexico City. The only way to boost economic growth in Latin America is through the implementation of a new political pact that encourages private investment in the region, experts agreed in a forum organized by the Economic Commission for Latin America and the Caribbean (ECLAC).
During the XXXVI Regional Seminar on Fiscal Policy, a group of academics and representatives of regional and international organizations debated the fiscal situation in Latin America, the havoc left by the covid-19 pandemic and the challenges ahead.
Daniel Titelman, director of the Economic Development Division of the ECLAC region, emphasized that the great challenge for Latin American countries is to improve their fiscal policy and attract greater investment, for which it is necessary to think about tax reforms with a medium and long term vision.
An example of the region’s challenges, he said, are the challenges posed by climate change, for which investments ranging from 3 to 16 points of the gross domestic product are needed each year, “a great challenge in a region that invests and grows as little as Latin America.”
Other specialists from the International Monetary Fund, Inter-American Development Bank and United Nations Organization highlighted that the pandemic opened a space for several countries to improve their fiscal consolidation thanks to the fact that spending as a percentage of GDP remained stable.
However, they indicated, spending as a percentage of GDP in Latin American countries is still 6 or 7 points higher than prudential levels, and in the future it will be difficult to improve because inflation has not completely dropped to the levels desired by the central banks.
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– 2024-05-08 04:44:59
