Social economy reaches 11.1% of GDP in Latin America

The social economy in Latin America has proven to be a fundamental pillar in the region's economic structure, reaching an impressive 11.1% of Gross Domestic Product (GDP) and generating 5.8% of total employment. This economic model, which includes cooperatives, associations, and foundations, presents a viable alternative to current economic challenges, especially in a post-pandemic scenario where economic recovery is a priority.

In many Latin American countries, the social economy has grown in response to the need for sustainable job creation and the search for innovative solutions to social problems. Cooperatives, in particular, have played a crucial role, providing their members not only with employment but also with a voice in decision-making and the opportunity to participate in the market more equitably.

The report highlights that sectors such as agriculture, artisanal production, and community services are experiencing a boom, allowing local communities to strengthen their economies and promote sustainable development. In countries like Uruguay and Argentina, the social economy has been fundamental in mitigating the impact of the economic crisis, providing a space for resilience and solidarity in an uncertain environment.

Experts suggest that the growth of the social economy is not only positive from an economic perspective but also contributes to social cohesion and community well-being. However, it is necessary for governments and financial institutions to support this sector through policies that facilitate its development, such as financial education and access to credit.

In conclusion, the social economy is proving to be a vital component of sustainable growth in Latin America, offering a response to the economic and social needs of the population. As the region continues to face challenges, promoting this economic model could be key to achieving an inclusive and sustainable recovery.