The region has shifted toward more exports

The region has shifted toward more exports, The biggest and most important adjustment during the recovery has been the shift of production capacity toward exports. Despite the slowdown in global trade, the share of exports in GDP is now 10 percentage points higher than it was during the 2000s (figure 1.8).

This shift is important, because the economic structure during the 2003–07 boom, when growth in many countries in the region was driven largely by expansion of nontradable sectors, was no longer sustainable.

During that boom, capital inflows, oil revenues, and inflows of remittances resulted in increased domestic spending and a related loss in international competitiveness.

In the new normal after the crisis, all three forms of foreign inflows are more moderate. The change has created the opportunity to become more competitive in international markets while reducing investments in real estate and other nontradable sectors.The region has shifted toward more exports

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