Fiscal Positions in Latin America: Have They Really Improved?

The improvement of fiscal balances has been a cornerstone of Latin America’s macroeconomic stabilization and recovery following the crises of 1994–2002. After hovering around 5 percent in the last decade, the average fiscal deficit in Latin America declined steadily beginning in 2003, and reached a surplus in 2006. Initially, this reflected a reduction in government […]

Is the improvement of Latin America’s fundamentals an illusion?

As Marcio García observed in a recent blog in the Latin America Economonitor, the change in Latin American economic performance over the last decade is best described with one word: “Wow.” Inflation is down. Growth is up. Fiscal accounts are strong. Debt is declining. Current accounts are in surplus. Many countries are de-dollarizing. Who would […]