IMF: It has taken centuries to achieve the standard of living in Latin America

Developed economies are recovering faster than many developing countries. The epidemic changes the perception of what happens when the income gap between rich and poor economies narrows.

International Monetary Fund (IMF) researchers study the experience of Latin America before Covid-19. To measure integration, the ratio of per capita GDP of Latin American countries to that of the United States was used.

The average consolidation rate in Latin America in 2019 is about 25% (i.e., per capita GDP in the United States). Brazil and Colombia had rates close to this average. Panama had twice the concentration rate than the regional average.

The IMF analyzed how much the codes changed over time in 2019. While some countries are moving in the right direction, most are not; There is limited progress or no improvement. The average rate of unification in Latin America is only 0.5 percent per decade. “At this pace, Latin American countries have been taking centuries to achieve the American standard of living,” the fund’s researchers highlight.

In addition, half of the Latin American countries had a negative consolidation rate, with Venezuela showing strong deviation. The most notable developments are in Panama, Chile, the Dominican Republic and, to a lesser extent, Uruguay, Costa Rica and Peru.