Latin America Economics

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Latin America Economics Update

12 October, 2017

What would the collapse of Nafta mean for Mexico?

The immediate effects of a collapse in Nafta on Mexico’s economy might be smaller than many expect – we would probably nudge down our GDP forecast for 2018 by something like 0.5-1.0%-pts. The effects over a 3-5 year horizon are more uncertain, but would be cushioned to some extent by a weaker peso.

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