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Region set for a slowdown despite China’s re-opening

The outlook for Latin America has turned more positive at the start of the year as China has shifted away from its zero-Covid policy and commodity prices have rallied. But this comes against a backdrop in which regional growth is showing clearer signs of weakening. The Q4 GDP figures due over the coming weeks are likely to show slowdowns in growth and, in some cases, outright falls in output. And high inflation, elevated interest rates and tight fiscal policy mean that regional growth is still likely to be softer this year than it was in 2022.

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