The global economic outlook and the challenges it poses for the international integration of Latin America and the Caribbean

As explained in chapter I, prospects for the global economy for the remainder of the decade point to several years of slow growth in the industrialized countries. Such a scenario reinforces the long-term trend towards a growing contribution by the developing economies to global economic variables. Another trend that is rearranging the international production and trade map is the geographical fragmentation of production, which is increasingly structured in value chains. These are characterized by substantial flows of trade in intermediate goods and services and of foreign direct investment. Variables such as physical and services infrastructure, connectivity and logistics are essential for this production mode to work smoothly.

Related Subject(s): Economic and Social Development