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Set for a slow recovery

Activity in the region slowed to a crawl at the end of last year and, while a recovery will take hold in the coming quarters, growth will fall short of consensus expectations. The disinflation process has largely run its course and the strength of core inflation is becoming more apparent. That will limit the extent of monetary easing cycles across the region. Meanwhile, fiscal concerns are likely to build this year as public debt ratios return to an upwards path.

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