Asia and Latin America Look to Strengthen Trade, Financial Ties

imfThere is great potential to deepen trade and financial linkages between Asia and Latin America, and implementing the right policies will be key to a successful partnership, conference participants said.

The March 3 conference, entitled “Economic Linkages between Asia and Latin America: Opportunities, Challenges, and Policies,” noted that trade and financial ties between Latin America and Asia have clearly strengthened over the past decade. China in particular has become a major export market for Latin America’s commodities. Investment flows between both regions have also been growing, especially from Asia to Latin America.

But uncertainty about the future is higher. Rebalancing of economic activity in China (from investment and manufacturing toward consumption and services), weaker commodity prices, and tighter global financial conditions are bearing down on Asia and Latin America. These developments are also weighing heavily on global trade.

“For the first time in 20 years, trade growth is slower than GDP growth,” said IMF Deputy Managing Director Min Zhu in his opening remarks. The key issue for both regions is finding ways to promote growth and trade, he said.

IMF: Asia and Latin America Look to Strengthen Trade, Financial Ties

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