Latin America experienced economic ups and downs in the past decade, and faces a gloomy outlook for 2015–2020. This chapter first delineates the near-term growth prospects for the region, examining the subregional patterns closely with three national cases—Argentina, Brazil, and Venezuela—and analyzing the external constraints for the region’s economic growth. It then examines the major challenges ahead for the region with analysis of Latin America’s economic relationship with the United States and China, respectively. On the one hand, while the U.S.’s current bilateral approach leaves the economic relationship with the region fragmented, the economic and trade cooperation between the U.S. and Latin America can be strengthened through fostering productive integration and the development of regional value chains oriented toward the U.S. market. On the other hand, China’s growing presence in the region poses challenges to Latin America countries, namely achieving export diversification, diversification of Chinese investments in the region, and Latin investment in China and Asia-Pacific.
Why Is Europe Falling Behind? Structural Transformation and Services' Productivity Differences between Europe and the U.S.