This framework should prioritize and combine increased revenues with a more effective use of resources on the expenditure side. Firstly, there is a need to review fiscal covenants based on a framework of public finance sustainability. He emphasized that the current circumstances, characterized by significant needs and substantial constraints, necessitate two key actions. The Executive Secretary of ECLAC also highlighted that the average economic growth of the region during the 2014-2023 decade will be 0.8%, which is less than half the average growth experienced during the renowned "lost decade" of the 1980s (2.0%).
In this context, macroeconomic policy must navigate a slowdown in economic growth and rising inflation, while simultaneously addressing the pressing need to revive economies, create high-quality jobs, and strengthen social policies," he explained. "This is the situation we are facing, worsened by external shocks and the lingering effects of the pandemic. Consequently, this has significantly reduced capital flows to emerging markets. This volatility has reinforced global inflationary pressures and prompted advanced economies' central banks to swiftly and synchronizedly tighten monetary policies in 2022 to stabilize inflation expectations. The conflict between the Russian Federation and Ukraine has contributed to weakening global growth, causing increased volatility in international financial and commodity markets. He further stated that the region is currently facing challenging global macroeconomic conditions, making it exceedingly difficult to conduct macroeconomic policy. These meetings aim to provide dialogue spaces that contribute to the development of common agendas to address the fluctuations of the global economy. In his inaugural speech, José Manuel Salazar-Xirinachs emphasized the importance of organizing regional meetings of finance authorities with the support of ECLAC and the United Nations.
It was attended by authorities from 18 Latin American and Caribbean countries.ĭuring the meeting, the authorities analyzed the current global and regional macroeconomic context, the regional fiscal situation, the fiscal implications of meeting investment needs for climate change adaptation and mitigation, and strengthening progress towards the Sustainable Development Goals (SDGs). The meeting was inaugurated by José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, and Camillo Gonsalves, Minister of Finance of Saint Vincent and the Grenadines.
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The meeting was organized by Saint Vincent and the Grenadines, as the Pro Tempore President of CELAC, with the support of ECLAC, in compliance with the mandate derived from the Buenos Aires Declaration issued by the 7th Summit of Heads of State and Government of the regional bloc held in January 2023 in Argentina.
The decision was made during a high-level face-to-face meeting held at the headquarters of the Economic Commission for Latin America and the Caribbean (ECLAC) in Santiago, Chile. Ministers of Finance of the Community of Latin American and Caribbean States (CELAC) have agreed today to move forward to a common regional agenda in response to the global economic crisis.
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