The recent annual report of the Economic Commission for Latin America and the Caribbean (ECLAC), “Economic Survey of Latin America and the Caribbean 2026. Growth and productivity in a context of high informality: limitations and challenges to boost productive formalization in the region,” indicates that economic growth It could reach 2.2 % this year and 2.5 % in 2027.

The commission believes that even if these projections are met, the indicators would be insufficient to “sustainably raise per capita income, close development gaps, and significantly expand policy space.”

The region is not immune to factors currently impacting the international context, such as slower global growth, geopolitical tensions, financial volatility, fiscal policies, and pressures in energy markets.

However, ECLAC emphasizes that low levels of investment, weak productivity growth, the decline in formal job creation, and high and persistent informal employment are the biggest obstacles to regional growth.

The Executive Secretary of ECLAC, José Manuel Salazar-Xirinachs, highlights some achievements of Latin America and the Caribbean in terms of macroeconomic stability, but notes that there is still work to be done to overcome slow growth, increase investment and productivity, and achieve productive formalization that “strengthens the capacities of individuals and businesses, expands social protection, and generates more quality formal jobs.”

M.Pino

Source: cepal

(Reference image source: Dominik Lückmann on Unsplash)

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