The use of key indicators to assess Latin America’s long-term economic performance

Abstract

Official statistics and key indicators are essential for observing countries’ economic and social progress, determining the structural drivers of their growth and shaping priorities. Using the methodology of Khramov and Lee (2013), key indicators from the System of National Accounts (SNA), as well as balance of payments, monetary and financial, and public finance statistics, it is proposed to use a composite indicator to assess Latin America’s economic performance. An examination of long-term trends finds that this index generally captures the major economic shocks and periods of robust performance during the period 1990-2013. It construction enables the measurement of specific indicators that determine overall economic behaviour. While the usefulness of the index for analysing macroeconomic dynamics is high in comparison with alternative benchmark values, caution should be exercised when selecting a time frame for estimating the relative weights of each component.