A new study released earlier this month by the Inter-American Development Bank (IDB) has put countries in Latin America and the Caribbean on notice that they are confronted with a savings crisis that might do damage to their economies in the years ahead. The study is also warning of “major fiscal challenges in the years ahead”.
The IDB report estimates that a gross national savings rate in the Caribbean and Latin America of just 17.5 per cent of gross domestic product between 1980 and 2014, falls far below the 33.7 per cent for emerging Asia and 22.8 per cent for advanced economies.