4. After the Boom—Commodity Prices and Economic Growth in Latin America and the Caribbean
Author:
International Monetary Fund
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Language:
English
Print Publication Date:
24 Apr 2014
Keywords:
REO; commodity; emerging market; bond yield; exporter in the sample; commodity-importing economy; absence of the commodity price shock; Commodity prices; Commodity price indexes; Commodity booms; Production growth; Global; Caribbean

Abstract

This chapter takes another look at the commodity boom experienced by Latin America and the Caribbean (LAC) since the early 2000s and analyzes how the region will be affected by a more subdued outlook for commodity prices. The analysis suggests that growth in the years ahead could be significantly lower than during the commodity boom even if commodity prices were to remain stable at their current relatively high levels. The results caution against trying to offset the current economic slowdown with demand-side stimulus and underscore the need for ambitious structural reforms to secure strong growth over the medium term.

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Contributor Notes

Note: Prepared by Bertrand Gruss. Anayo Osueke, Carlos Rondon, and Ben Sutton provided excellent research assistance. See Gruss (forthcoming) for technical details.
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Cover Regional Economic Outlook, May 2014, Western Hemisphere
Regional Economic Outlook, May 2014, Western Hemisphere
ISBN:
9781484360118
ISSN:
2071-4165
Publication Date:
24 Apr 2014
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484360118.086
Pages:
82

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