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Changing Trade Relations to Guide Economic Growth Trajectory
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In Q2 2017, growth in Latin America slowed to 1.9% compared to the growth of 2.2% in Q1 2017, as manufacturing sector shrank by 0.5% and external demand declined. Colombia, Mexico, and Panama’s economic growth declined registering 1.2%, 2.2%, and 5.4% growth, respectively, in Q1 2017. However, Panama continues to remain the fastest growing economy in the region. Chile’s economy rebounded from the low of 0.1% in Q1 2017 to 1% in Q2 2017, driven by strong domestic demand and positive investor sentiments. However, a shrinking construction sector and dropping exports continue to hinder the growth of Chile’s economy. Increase in imports and strengthening of private consumption hint toward a stronger recovery for the Chilean economy. Mexico’s economic growth was sustained by a strong service sector and growing exports. Uncertainty regarding the renewal of North American Free Trade Agreement, which is currently providing Mexican goods access to the large US and Canadian market, threaten to shrink Mexico’s trade balance and overall economic growth. In June 2017, Panama formally cut its ties with Taiwan to start a diplomatic relation with China. This is expected to result in new trade deal with China that will facilitate the increase in Panama’s trade with China providing momentum to Panama’s economic growth. Country Coverage – Emerging Latin America· Chile· Colombia· Mexico· PanamaYear, Quarter and Month Coverage• Yearly Data: 2012 – 2021• Quarterly Data: Q1 2012 – Q2 2019• Monthly Data: January 2012 – June 2017
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