This year’s edition analyses in depth the economic linkages between China’s current and future transformation and Latin America’s development model. It proposes a forward-looking framework to discuss trends in this relationship, in the context of a new phase of shifting wealth, the shift of the economy´s centre of gravity from OECD economies towards emerging economies.
Some of the findings are summarized below:
- Trade between Latin America and China experienced an unprecedented expansion, but the region’s current slowdown reveals the structural characteristics of commodity-based growth.
- In light of this weakening, Latin American governments are looking for ways to remain competitive in and attractive to China, exploring innovative productive development policies to better participate in global value chains and boost economic diversification.
- Latin America needs to invest in innovation, skills, regional integration and infrastructure to benefit from China’s new normal.
- For attracting Chinese investment Latin America requires better regulations, stronger government capacities to develop bankable projects, deeper and more liquid capital markets, environmental sustainability and a stronger commitment to transparency and good governance, both in principle and practice.
The whole Latin American Economic Outlook 2016 report is available for the IESE Community here.