Latin American Economic Outlook 2016

Towards a New Partnership with China

image of Latin American Economic Outlook 2016

The Latin American Economic Outlook 2016 is devoted to the evolving relationship between Latin America and China, as well as its prospects in the long term. China's transformation involves a gradual shift in its development strategy, including the rebalancing process from investment to consumption, the demographic transition, the structural transformation towards high value-added goods and services, and a "going-out" policy to approach other regions. This report lays the ground for discussing future trends in the relationship between China and Latin America, given these changing patterns. Based on the analysis of potential transmission channels of China’s new model to the region, which include issues on trade, finance and skills, the outlook aims to identify strategies and policy responses for Latin America to overcome development challenges. Latin America and China can complement each other further and build a mutually beneficial partnership for development.

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Executive summary

OECD Development Centre

The Latin American Economic Outlook 2016 explores how Latin America should deepen and improve its partnership with China as part of its development agenda. China has been – and will continue to be – a game changer for the region. The world’s economic centre of gravity has shifted away from OECD economies towards emerging economies during the past two decades, a phenomenon called “shifting wealth”. Ties between Latin America and China are now evolving well beyond just trade, challenging Latin American countries to adopt specific reforms to boost inclusive growth and build a mutually beneficial partnership with China.

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