Latin American Economic Outlook 2020
Digital Transformation for Building Back Better
The Latin American Economic Outlook (LEO) 2020 focuses on the role of digital transformation in helping to navigate through challenging times. The Covid-19 pandemic is having a profound impact on socio-economic conditions, accentuating the already complex scenario faced by a region with significant structural weaknesses. This unprecedented crisis comes at a time of high aspirations and reinforces the need to transform the very foundations of the development model in the region. The report explores how digital transformation can help to cope with the current socio-economic situation, boost productivity, strengthen institutions and achieve higher levels of inclusion and well-being. The LEO 2020 also highlights that international partnerships are fundamental to reaping the benefits of the digital transformation.
The LEO is a joint annual publication produced by the OECD Development Centre, the United Nations Economic Commission for Latin America and the Caribbean (UN ECLAC), the Development Bank of Latin America (CAF) and the European Union (EU). It is the first pillar of the EU Regional Facility for Development in Transition for Latin America and the Caribbean.
Also available in: Spanish
Fostering productivity and enhancing the digital transformation
Productivity in Latin America and the Caribbean relative to the Organisation for Economic Co-operation and Development (OECD) area has been falling since the 1950s. The growing gap reflects a production structure based on natural resources and abundance of low-skilled labour, which results in low value added. Large productivity gaps within sectors and firms reveal a heterogeneous productive structure. Structural difficulties could be amplified by the coronavirus (Covid-19) crisis. The digital transformation could help countries face the pandemic by improving productivity and efficiency and diversifying the productive matrix. However, its net impact will depend on policy choices and the development of indispensable and complementary factors, including communication infrastructure, transport connectivity as well as digital skills and capabilities.
Also available in: Spanish
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