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Average annual rates of growth (%), advanced economies, emerging economies and Latin America, 1960-2018

Examining Latin America’s ‘puzzle’ of low growth

Why do Latin American countries remain mired in sluggish economic growth? Economists have addressed the question with reams of analysis, but the answer is simple: low productivity. That in turn, has been caused by government involvement in the economy that has stifled competition and innovation. The real puzzle is what it will take for the region to change course. 

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GIS on target predictions

RCEP signed

In November 2020, 15 countries signed onto the Regional Comprehensive Economic Partnership (RCEP), a huge trade agreement that will include nearly a third of the global population and 29 percent of global gross domestic product. In 2019, GIS expert Walter Lohman predicted the deal would be signed before the end of 2020, pointing out that, “[t]he economies in the region ... have an interest in completing the RCEP, not only for the economic benefits ... but also to constructively engage China.” He added that this could mean “China will continue to gain market share and the region will continue to engage it constructively, seeking Chinese trade and investment.” But the signing of the agreement does not by itself reduce U.S. influence in the region. That will depend on Washington's willingness to re-engage with its partners there, he argued.

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Geopolitics are back on the agenda

Due to the fast changing international order geopolitics are back on the agenda. I believe that GIS makes a great contribution with analyses and insights that should help businesses and governments developing their responses.

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