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Latin American Economic Outlook 2021

Working Together for a Better Recovery

image of Latin American Economic Outlook 2021

The Latin American Economic Outlook 2021: Working Together for a Better Recovery aims to analyse and provide policy recommendations for a strong, inclusive and environmentally sustainable recovery in the region. The report explores policy actions to improve social protection mechanisms and increase social inclusion, foster regional integration and strengthen industrial strategies, and rethink the social contract to restore trust and empower citizens at all stages of the policy‑making process. Moreover, it stresses the need to promote sustainable and adapted macro‑economic frameworks to finance the recovery, as well as the importance of renewing international co‑operation to support these policy actions. Finally, the publication includes three crucial cross‑cutting themes: climate change and the green recovery, the digital transformation, and gender.

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.

English Also available in: Spanish

Regional integration and productive transformation for a resilient recovery

The COVID-19 crisis has strengthened the case for developing stronger productive capacities and regional value chains across countries in Latin America and the Caribbean (LAC). Before the pandemic, the region was already suffering from low productivity growth, with a growing gap with developed economies. The pandemic has emphasised the region’s reliance on international production as many economies experienced import shortages. To foster deeper regional integration and increase productivity growth the region will need to promote trade integration and regional value chains by undergoing major industrial-policy efforts and converging the different existing integration mechanisms and institutions. Further regional integration in LAC could strengthen competitiveness and job creation, particularly, in key sectors such as the pharmaceutical, automotive, energy, the circular economy or sustainable agriculture. Moreover, fostering digital transformation and a digital single market could play a major role in boosting productivity and promoting regional value chains.

English Also available in: Spanish

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