20
Economic Commission for Latin America and the Caribbean (ECLAC)
Chapter I
C. Fiscal consolidation efforts were evident in the containment of public spending growth Public spending growth has been slowing gradually, albeit with certain subregional differences. As illustrated in figure I.11, the year-on-year variation in the public spending to GDP ratio has trended downwards in the most recent period. Spending has slowed sharply in Latin America since 2014, mainly led by the countries in the north of the region, in response to the fiscal crises in 2013 and 2014. In South America, this slowdown steepened in 2015 and, even more intensively, in 2016 and 2017. Adjustments in both subregions of Latin America occurred mostly in capital expenditure, which contributed negatively to spending growth. This negative contribution by capital expenditure was seen in the Caribbean as well, where it has been cut heavily in recent years —although it did rise in 2017— in order to contain overall spending. Figure I.11 Latin America and the Caribbean: contribution of public spending components to year-on-year changes in the public spending to GDP ratio, 2012-2017 (Percentages)
A. Latin America (17 countries)
B. The Caribbean (12 countries)
5
6
4
5 4
3
3
2
2 1
1
0
0
-1
-1
-2
-2
-3
2012
2013
2014
2015
2016
2017
C. Central American isthmus, Dominican Republic, Haiti and Mexico
-3
6
4
5
3
4
2
3
1
2
0
1
-1
0
-2
-1 2012
2013
2014
2015
Capital expenditure
2016
2013
2014
2015
2016
2017
2015
2016
2017
D. South America (8 countries)
5
-3
2012
2017
-2
Primary current spending
2012
2013
2014
Interest payments
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
Total spending