Latin America and the Caribbean (LAC) stand at a critical juncture, facing sluggish economic growth prospects compounded by heightened global uncertainty. A new report from the World Bank underscores the urgent need for countries in the region to fundamentally rethink their economic development strategies, moving beyond traditional models to embrace competition and innovation as central pillars for sustainable prosperity.
The analysis, detailed in the semi-annual report titled "Competition: The Missing Ingredient for Growth?", highlights that prevailing external conditions—including slower growth among major trading partners, geopolitical tensions, climate change impacts, and rapid technological shifts—demand a proactive and transformative policy response. Merely weathering the storm is insufficient; a strategic pivot is necessary to unlock potential and build resilience.
The Challenge: Stagnation in a Shifting Global Landscape
The World Bank projects modest growth for the LAC region, continuing a trend of underperformance relative to its potential and other emerging market regions.
