Despite the onslaught of illiberal populism and a new wave of toxic economic statism across countries in Latin America and the Caribbean, there seems to be a newfound optimism emerging about the region’s economic future.
In 2023, Latin American and the Caribbean (LAC) economies are projected to grow by over 1.6 percent—far below their real potential, but up from earlier estimates.
Economic growth flows from a strong market, open trade, and robust activity in the private sector, and there are countries which have embraced a resurgence of free-market alternatives in LAC countries. The post-pandemic tourism recovery and a rebound in global trade—in part due to China’s reopening—are two reasons to adopt an optimistic view about economies across the LAC region. In certain cases, the public sector has played a pivotal role in alleviating the burden of taxes and regulations, with some elected officials favoring market activity over government bureaucracy.
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