Political Risk Latin America Blog @PolRiskLatam

Through Dynamic Growth Latin America and the Caribbean Absorbed the Crisis’ Social Impact

Posted in News and Articles, Political Risk by politicalrisklatam on October 7, 2010

by Gabriela Aguilar for The World Bank, October 6th, 2010.

Press Release No:2011/122/LAC

Latin America and the Caribbean (LAC) cushioned the social impact of the 2008 global crisis thanks to its ability to inter-connect firmly with emerging markets in Asia which in turn boosted growth to 5-6 percent for 2010 -and at least 4 percent for 2011- while keeping in place the region’s social protection networks. 

According to “Globalized, Resilient, Dynamic: The New Face of Latin America and the Caribbean” a report authored by the World Bank’s Chief Economist for LAC, Augusto de la Torre, the region showed a remarkable capacity to withstand the crisis’ impact which –the report argues- did not last very long in comparison with other regions, including developed countries, “due to the region’s sound macroeconomic, fiscal and financial policies.” 

Between 2002 and 2008, LAC managed to lift 60 million Latin Americans out of poverty, even as preliminary estimates showed the crisis adding 10 million people to the ranks of its poor. But according to new World Bank data, in 2009 the number of people living in moderate poverty ($4 per day) grew by 2.1 million with respect to 2008, totaling 168.3 million, while the number of Latin Americans living in extreme poverty ($2.5 per day) grew by 2.5 million, and now it reaches 85.9 million. (continue reading… )

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