Latin American Economic Outlook 2023
Investing in Sustainable Development
Latin America and the Caribbean needs an ambitious and comprehensive investment agenda to embark on a stronger and more sustainable development trajectory. The 16th edition of the Latin American Economic Outlook proposes ways to make this possible through co-ordinated actions by policy makers, the private sector and international partners. It argues that to close existing investment gaps and overcome the region’s structural challenges, it is essential to scale up domestic and foreign investment. These investments should be a catalyst for better quality jobs and an upgraded production structure, harnessing the potential of LAC’s endowments and of the green and digital transitions. Better governance and information are key to promoting effective and efficient public and private investments. Public institutions are fundamental to aligning investments with national development strategies while building stronger social contracts. The report presents a series of options for financing this new investment agenda, including innovative debt instruments and a renewed role for development finance institutions. The report also highlights the importance of reinvigorated international partnerships across the investment agenda.
Also available in: Spanish
Brazil
Poverty in Brazil decreased from 20.9% in 2016 to 19.5% in 2022, below the Latin America and the Caribbean (LAC) average of 24.1%. Extreme poverty was at 5.3% in 2022, below the LAC average (8.3%). The Gini index decreased from 53.3 in 2016 to 52.9 in 2021, remaining above the LAC average (44.8). Regarding investment and production transformation indicators, total investment in Brazil increased from 15.5% of GDP in 2016 to 18.8% in 2022, following the LAC average trend, which increased from 20.8% to 21.3% over the same period. Private investment represented 14.2% of GDP, somewhat below the LAC average (15.8% in 2019). Brazil’s labour productivity, measured against output per employed person in the United States, was 24.7% in 2023, below the LAC average of 27.1%. The share of exports of high-tech products in total exported manufactured goods declined from 16.0% in 2016 to 9.0% in 2021 while remaining above the LAC average (7.2%). Positive perceptions of foreign direct investment (FDI), which declined across the LAC region, also fell slightly in Brazil, from 63.4% in 2016 to 60.0% in 2020. The country’s tax revenue increased from 31.6% of GDP in 2016 to 33.5% in 2021, in contrast to regional trends. Environment-related tax revenues remained almost unchanged at 0.7% in 2021.
Also available in: Spanish
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