World Bank2017-05-192017-05-192011-09https://hdl.handle.net/10986/26674This semiannual report examines short-run and long-run challenges for economic growth for the Latin America and the Caribbean (LAC) region in the aftermath of the 2008-09 global financial crisis. The first part of this report provides an overview of recent economic developments, including an analysis of the sources of external risks for short-term economic activity in the region, and an in-depth look at whether LAC can leverage its deepening connections with China and turn it into an important (but not the only one) source of long-term growth. It also discusses policy response options for the short and long-term horizons. The second part of the report documents and analyzes the emergence, over the last decade, of a downward trend in education earnings premia (the additional earnings associated with a higher level of education), which is believed to reflect a re-balancing between higher supply and lower demand for skills.en-USCC BY 3.0 IGOADVANCED COUNTRIESADVANCED ECONOMIESADVANCED ECONOMYADVERSE EFFECTSAGGREGATE DEMANDANNUAL GROWTHAVERAGE GROWTHBALANCE SHEETBANKING SYSTEMSBASIS POINTSBENCHMARKBILATERAL TRADEBINDING CONSTRAINTSBUFFERSBUSINESS CYCLESBUSINESS ENVIRONMENTCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL GOODSCAPITAL INFLOWCAPITAL INFLOWSCENTRAL BANKSCOMMODITIESCOMMODITYCOMMODITY EXPORTSCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPETITIVE EXCHANGECOMPETITIVE EXCHANGE RATESCOMPETITIVENESSCONNECTIVITYCONSOLIDATIONCURRENCYCURRENCY APPRECIATIONCURRENCY MISMATCHESDEBTDECISION MAKINGDEVELOPED COUNTRIESDEVELOPED WORLDDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDOMESTIC SAVINGSDYNAMIC EMERGING ECONOMIESECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC DOWNTURNECONOMIC DYNAMICSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC OVERHEATINGECONOMIC PERFORMANCEECONOMIC PROGRESSECONOMIC RESEARCHEDUCATIONAL ATTAINMENTELASTICITYEMERGING MARKETSEXCHANGE RATEEXCHANGE RATE POLICIESEXCHANGE RATESEXPANSIONARY MONETARY POLICYEXPORT COMPETITIVENESSEXPORT REVENUEEXPORTSEXTERNAL CONDITIONSEXTERNAL SHOCKSFACTORS OF PRODUCTIONFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL POLICIESFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SYSTEMSFISCAL POLICIESFISCAL POLICYFIXED INVESTMENTFLEXIBLE EXCHANGE RATESFORECASTSFOREIGN DIRECT INVESTMENTGDPGDP PER CAPITAGINI COEFFICIENTGLOBAL ECONOMIC LANDSCAPEGLOBAL ECONOMYGLOBAL EXPORTSGLOBAL RISKGLOBAL STOCK MARKETSGOLD STANDARDGROWTH FRONTGROWTH MODELGROWTH PERFORMANCEGROWTH POTENTIALGROWTH PROJECTIONSGROWTH PROSPECTSGROWTH RATEGROWTH RATESHIGH GROWTHHIGH INCOME COUNTRIESHUMAN CAPITALINCOMEINCOME INEQUALITYINCOME LEVELSINCREASING RETURNSINCREASING RETURNS TO SCALEINDEBTEDNESSINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATION RATESINFLATION TARGETINGINFLATIONARY PRESSURESINFORMATION TECHNOLOGYINFRASTRUCTURE INVESTMENTINTEREST RATEINTEREST RATESINTERMEDIATE GOODSINTERMEDIATE INPUTSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL RESERVEINTERNATIONAL RESERVE POSITIONSINTERNATIONAL TRADEKNOWLEDGE DEVELOPMENTLABOR COSTSLABOR MARKETSLEVERAGELIQUIDITYLIVING STANDARDSLOCAL CURRENCYLONG-RUN GROWTHLONG-TERM GROWTHLOW INFLATIONMACROECONOMIC POLICIESMACROECONOMIC POLICYMARGINAL PRODUCTMARKET TRENDSMARKET VOLATILITYMEDIUM TERMMETALSMIDDLE INCOME COUNTRIESMONETARY AUTHORITYMONETARY POLICYMORTGAGEMORTGAGE MARKETNATURAL RESOURCENATURAL RESOURCESOUTPUT GAPOUTPUT GROWTHOUTSOURCINGPER CAPITA INCOMEPOLICY ENVIRONMENTPOLICY MAKERSPOLITICAL SYSTEMPORTFOLIOPOTENTIAL OUTPUTPOVERTY RATESPRIMARY EDUCATIONPRIMARY PRODUCTSPRO-POORPRODUCERSPRODUCTION COSTSPRODUCTION STRUCTUREPRODUCTIVITYPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPUBLIC DEBTPUBLIC FINANCESPUBLIC INFRASTRUCTUREPUBLIC POLICIESPUBLIC SECTORPURCHASING POWERRATE OF GROWTHREAL ECONOMIC ACTIVITYREAL GDPREAL GROWTH RATERELATIVE PRICESRICH COUNTRIESRISK AVERSIONSAFETY NETSSAVINGSSKILLED WORKERSSOCIAL PROTECTIONSOCIAL SAFETY NETSSOCIAL SECURITYSOVEREIGN DEBTSTOCK MARKETSSUSTAINABLE GROWTHSYSTEMIC RISKTECHNOLOGICAL PROGRESSTECHNOLOGY FRONTIERTERMS OF TRADETOTAL FACTOR PRODUCTIVITYTRADE LIBERALIZATIONTRADE OPENNESSTRADING SYSTEMTREASURYTREASURY BILLSTURNOVERUNCERTAINTIESUNCERTAINTYUNSKILLED LABORVALUE ADDEDVIRTUOUS CYCLESWAGESWORLD DEVELOPMENT INDICATORSWORLD ECONOMYWORLD INVESTMENT REPORTSerialWorld Bank10.1596/26674