As Latin American Economic Growth Slows, Regional Economies Are at a Crossroads

Latin America had a long spell of economic growth, 5.9 percent, and a so-called “golden decade” due to bubbles, loose credit and a commodity boom that peaked in 2010. Latin American growth was analyzed at the University of Miami Latin America Symposium, covered by Mimi Whitefield for the Miami Herald. Since 2010, the region’s growth has tapered. Governments now face challenges to maintain stability. According to Augusto de la Torre, chief economist for Latin America and the Caribbean at the World Bank, the region cannot deliver the same level of services that it did during its peak. Inequality spreads discontent. To reduce pessimism about the world economy, local governments must tackle corruption, inequality and the region’s low rate of public education. Countries now must be content with 2.5 percent growth, a stable pace, and governments must manage expectations of the middle classes that emerged during the “golden decade.” The efficiency of new economic models will be reflected in the growth of countries such as Brazil and Venezuela. – YaleGlobal