Economic policy

For a number of years now, fiscal policies in the region have focused on deficit reduction. More attention has been paid to the high levels of public debt and to shortterm financing than to the potential of fiscal policy to play a countercyclical role (see the descriptions of the different countries’ policies in Preliminary Overview of the Economies of Latin America and the Caribbean, 2003). With respect to revenue, the authorities have made strenuous efforts to broaden the tax base and curb tax evasion (see the box on structural reforms and the chapters on the individual countries). In terms of public spending cuts, the rigidity of current expenditure has led most of the countries to trim spending mainly in the area of capital expenditure. This has tended to worsen the region’s already chronic infrastructure deficiencies and could undermine the economies’ long-term growth potential.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions