The Latin American Economic Outlook 2021 (LEO) sets out policies for a strong, inclusive and sustainable recovery in Latin America and the Caribbean (LAC). This overview summarises the main results of the report. The LEO first assesses the dramatic socio‐economic impacts and policy responses to the coronavirus (COVID‐19) crisis and the extent to which the pandemic has exacerbated existing development traps in the region. The report then builds on this assessment to explore the key foundations for the recovery: i) strengthening public finances to support productive investment and social spending, as well as a more sustainable model of financing for development; this will require implementing holistic, sequenced and consensual fiscal policies; ii) developing stronger social protection systems and improving quality of public services, building on lessons learned from social policy innovations during the crisis; iii) designing a regional productive strategy to increase competitiveness and formal jobs, and explore the potential of further regional integration; and iv) building consensus across all actors in society on the reforms needed for the recovery and for inclusive and sustainable development, through a renewed social contract that is fair, legitimate and stable, and that puts citizens’ well‐being at the centre of policy making. At the international level, the LEO explores the important role renewed international partnerships can play to facilitate the recovery through mission‐driven partnerships.
Latin American Economic Outlook 2021To read the full report by the OECD, please click here.