Growth and the fiscal implications of climate shocks for the economies of Latin America and the Caribbean

Latin America and the Caribbean is vulnerable to climate change. Rising temperatures and changes in hydrometeorological conditions, with a higher incidence of droughts and heatwaves and greater variability in precipitation levels and patterns, threaten to undercut the determinants of economic growth, reducing labour productivity, disrupting agricultural production and contributing to a rapid depreciation of the capital stock. At the same time, the increasing frequency and severity of extreme climatic events such as hurricanes and floods is exacting a growing toll on the region.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure