The Global Economic Outlook and Implications for Latin America

According to John Lipsky, managing director of the IMF, said that Latin countries should increase investment spending and develop further their financial markets as a way to boost growth and abate poverty.

Even though Latin countries are displaying positive growth rates, the region still lags behind other areas such as emerging economies in Asia. For Lipsky, much of the recent gains are due to factors such as high commodity prices. In his view, the positive growth rate displayed by Latin countries lately does not necessarily reflect a long-term strategy that will boost competitiveness. In turn, Latin countries must invest more in infrastructure. While he recognizes the role of good policies in boosting Latin growth one must not forget the ‘good luck’ factor of high world growth rates.