Latin American countries face a complex economic scenario due to the weakening of growth and the prevailing uncertainty in the international economy. While macroeconomic fundamentals in the region to deal with possible declines in aggregate demand in the short term are solid, medium-term scenario is less favorable than in the past decade. Due to the slowdown in external demand and the volatility in the price of raw materials, of which Latin American countries still rely heavily structural weaknesses impede achieving higher economic growth and more inclusive for years.
To meet these challenges and consolidate recent progress, especially in reducing poverty and inequality, it is necessary to promote a structural change that favors the diversification of the economy, increase productivity and reduce production and technological gaps. It is recommended that to achieve these goals, the governments of the region to redouble their efforts in the design and implementation of more and better policies for productive development, innovation, and education funding. Cooperation and economic integration between countries can also be effective tools to generate mutual learning and dynamism necessary in the present context.
The report proposes policies to transform Latin American SMEs agents of change, in order to increase their productivity and competitiveness, as well as maximize their potential to generate quality jobs.