Latin America’s Macroeconomic Outlook in the Global Context: Bright Future or Déjà Vu all Over Again?

After displaying eight years of high growth, some Latin American economies are cooling off in spite of a sustained favorable external environment and continued large inflows of foreign capital. In addition, some countries in the region may be exposed to lingering global financial risks. This recent trend has led many economists to question whether Latin America still has the potential to maintain a strong growth performance.

On April 29, the Brookings-CERES Economic and Social Policy in Latin America Initiative hosted a discussion on the macroeconomic policy challenges policymakers should meet head-on to sustain growth and minimize financial risks. Panelists included: José Juan Ruiz Gόmez, chief economist and manager of the research department at the Inter-American Development Bank; Ernesto Talvi, director of the Brookings-CERES Economic and Social Policy in Latin America Initiative; Augusto de la Torre, chief economist for Latin American and the Caribbean at the World; Alejandro Werner, director of the western hemisphere department at the International Monetary Fund. Vice President Kemal Derviş, director of Global Economy and Development at Brookings, moderated the discussion.