6th Floor, Woodrow Wilson Center

Inequality in a Lower Growth Latin America

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As noted in the October 2014 LAC report, Inequality in a Lower Growth Latin America, a recent period of high growth in Latin America brought significant poverty reduction and declining income inequality throughout the region. However, since 2012, regional growth has decelerated significantly: it is estimated to have been a mere 1.2 percent for 2014, much less than the 4-5 percent growth rates witnessed during the commodities boom. The question is whether the economic slowdown in the region portends a reversal of the major social gains achieved over the last decade and a shrinking of the middle class, whose expectations and political demands have risen.