From Buenos Aires to Bogotá, an economically restless continent

In less than a year, South America’s two leading economies have undergone a 180-degree political and economic turnaround: President Lula’s accession to power in Brazil signalled a return to interventionism, while President Milei’s accession to power in Argentina heralded an ultra-liberalist turn. Social policies in Mexico and Colombia, the fight against hyperinflation in Venezuela, ultra-orthodox monetary policies, dollarization of certain economies: the continent seems to be in search of its own economic recipes.

The volatility of growth in Latin America in recent years has illustrated its heavy dependence on raw materials. In 2023, Argentina entered a recession, while Brazil’s growth in 2024 is projected at +1.5%. The ECLAC (the Economic Commission for Latin America and the Caribbean) points to the downward trend in growth in the region: from 3% per annum over the period 1980-2009, it has slumped to 1.6% between 2010 and 2024. The continent’s structural weaknesses are well known: productivity is too low, the weight of informal activities is high, and public and private investment is insufficient. How can we unleash the continent’s energies and revitalize South America?