13:24 | Sao Paulo (Brazil), Mar. 14.
Peru is among the most inclusive economies in Latin America, according to the World Economic Forum's Inclusive Development Index (IDI) 2018.
According to the
index, the most inclusive Latin American economies are
Panama, Uruguay,
Chile, Costa Rica, and Peru.
Likewise, the World Economic Forum indicates income inequality has declined in 14 out of the 16 Latin American countries ranked in this year's IDI. However, the region accounts for 11 out of the 25 developing economies with the highest levels of income inequality.
Nevertheless, increasing levels of public debt and high wealth, as well as income inequality are taking their toll on
Latin America despite improved economic growth prospects.
The index found that returning economic growth across Latin America could mask serious economic challenges for future generations.
It must be noted the 2018 assessment was undertaken following two decades of solid economic activity.
During this time, expansion of access to education and government transfers contributed to reducing the level of income inequality in Latin America.
While these developments and measures have helped to narrow the income gap between skilled and unskilled workers, Latin America remains among the most unequal regions in the world.
The index's findings provide a fresh lens through which to examine the region's economic challenges.
While 2017 finished on a positive note with recessions ending in Brazil and
Argentina, modest rises in economic activity and efficiency over the past five years and a projected growth rate of 1.7% in 2018 will be insufficient to alleviate the region's sustainability concerns and support a robust rise in median living standards.
This year's
World Economic Forum on Latin America takes place from 13-15 March in Sao Paulo, Brazil, bringing together global and regional leaders from government, business, and civil society.
(END) NDP/RMB/MVB
Published: 3/14/2018