Latin American growth slows as innovation fails to keep up

Latin America’s GDP growth rate has dropped to 1.5 per cent a year, in part because of obstacles to improving innovation, according to the latest OECD outlook for the region.

The Latin American Economic Outlook 2015 says that regional GDP growth is now lower than the global average of about 3 per cent. This is partly down to local governments struggling to improve innovation and educate people with the skills needed by their economies, the OECD has said.

“If we want to avoid a decade of low growth in Latin America, we must improve education standards, enhance skills in the workforce and boost innovation,” said Angel Gurría, the OECD’s secretary-general. “Policymakers need to undertake ambitious efforts to unleash higher and more equitable growth.’