Speech by Ángel Gurría OECD Secretary-General 11 October, 2019 - Montevideo, Uruguay (As prepared for delivery) Dear Enrique, Secretary-General Grynspan, Ladies and Gentlemen,
Latin America, a region vulnerable to the current international climateThis event is taking place at a key moment, in that the socio-economic and political climate is increasingly uncertain. The world economy has been weakening and, like other international organisations, we have revised downwards this year's macroeconomic forecasts. For 2019, the OECD expects global GDP growth of just 2.9%, six-tenths of a percentage point lower than in 2018 (3.5%).
Investment flows to and from OECD countries have also declined significantly since 2015, while volatility in the financial markets has increased. This international deterioration is affecting the economies of Latin America, many of which are very open to global trade and investment flows. In fact, ECLAC estimates that the global slowdown will have negative repercussions on 21 of the 33 countries in the region in 2019.
Some progress must be acknowledgedDespite this complex regional picture, we should not lose sight of the progress achieved by the region. In recent years, some Latin American countries have made advances in terms of macroeconomic stability, per capita income levels, the well-being of their inhabitants, the consolidation of the "middle classes", and the strengthening of institutional capacities.
The major challenges facing Latin AmericaFirstly, labour productivity in the region remains at a standstill. In 2017, it represented only 40% of labour productivity in the European Union, although in Uruguay it reached 56% of the European level. These low levels are related to the absence of structural changes geared towards innovation and more knowledge-intensive production, but also to the low levels of higher education and the lack of the skills and abilities required by the markets. This is further compounded by the precariousness of the logistics systems and the regional infrastructure.
Four areas of action for Latin America
Uruguay’s International Cooperation Policy for Sustainable Development by 2030 has already taken inspiration from some of the suggestions in the search for new forms of co-operation.
See also:OECD work on Economy |