South America after the commodity boom – productivity worries are back

During the commodities boom of the 2000s, South America exhibited a strong growth performance driven by progress in productivity development and investments. But with the drop in commodities prices the dependence on natural resources is rather becoming a liability for its economies. The same applies to its big service sector, which has resulted from premature deindustrialisation. Economic-policy measures are required now again that encourage productivity gains and help reduce misallocations so as to strengthen potential growth.

South America after the commodity boom – productivity worries are back(PDF, 113 KB, non-accessible)