Latin America and the Caribbean

The diverse countries of Latin America and the Caribbean, like most of the world, have been affected by multiple economic, health, and geopolitical shocks in recent years, all add­ing to the damage from more frequent extreme weather events. Historically, the region’s economies have been substantially affected by global commodity cycles, which drive high economic volatility. Economic volatility in turn has exacerbated the negative economic and social consequences associated with the region’s large income inequalities. To prepare for crises, governments must bear in mind that policy responses will have to be fine-tuned to each country in view of the region’s complexity.