Latin American Economy & Business Report

04/2020 - Fiscal austerity out the window – for now

As they buckle under the combined effects of the coronavirus (Covid-19) pandemic, the gathering global economic recession, and a slump in commodity prices, Latin American countries are all scrambling to launch countercyclical fiscal measures. But major economies such as Brazil, Argentina, and Chile are responding in different ways, as the unprecedented crisis is standing traditional thinking about fiscal austerity on its head.

Inter-American Development Bank (IDB) economists, Alejandro Izquierdo and Martín Ardanaz, recently compared the developing economic crisis derived from the Covid-19 pandemic with the financial crash of 2008-2009. Their main point is that in some key respects Latin American economies are significantly weaker now than they were then. Between 2008 and 2019 the region’s average fiscal deficit widened from 0.4% of GDP to 3%. At the same time, average public debt has soared from 40% to 62% of GDP.

Download the full briefing to read on...

Access to the full Latin American Economy & Business Report is one of the benefits of a Canning House Corporate Membership.

Canning House Individual Members receive LatinWeek with their weekly newsletter.

Learn more and become a member today.

More recent briefings & intelligence

Becoming a member at Canning House

By joining Canning House, you will become part of the UK's leading forum for informed comment, contacts and debate on Latin American politics, economics and business.

Just £50 per year.

Join now

Learn more

Sign up to our newsletter

All of Canning House's activities, including our upcoming events, insightful publications, latest news, and featured events from the UK-Latin America community.

In your inbox, every week, for free.