Economic Survey of Latin America and the Caribbean 2009-2010: The distributive impact of public policies

In 2009, the economies of Latin America and the Caribbean suffered the onslaught of the global financial crisis and, as a result, the region’s GDP shrank by 1.9%. In the second half of the year, however, most of the region’s countries were experiencing a robust recovery that has been consolidated in 2010, paving the way for regional GDP to expand by 5.2%. This makes Latin America and the Caribbean, together with the emerging economies of Asia, one of the most dynamic regions in the world. Both internal and external factors are underpinning this positive performance. The most notable external factors include the continued buoyancy of certain key Asian economies, whose sustained demand for the region’s products has led to a significant recovery of both the prices and volumes of exports, especially commodities such as metals and minerals, petroleum and certain grains in the case of South America. The —albeit sluggish— recovery of the United States economy, meanwhile, has improved the situation for Mexico and Central America and, inasmuch as it has boosted tourism demand, possibly for the Caribbean as well.