further expanding their number of their trading partners. Mexico and Panama are relatively less connected and may have potential to further diversify their networks. For Mexico, the limited diversification of its trading network is linked to the dominance of the U.S. market for its trade despite the existence of a broad spectrum of trade agreements, whereas for Panama, similar to the Caribbean, this may reflect the importance of trade in services. LAC Trade Connectivity: Trading Partners Being at the center of the world trade network is associated with
out as the relatively less central LA countries. 5 Similarly, the Caribbean remains on the periphery of the world trade network, but given the small size of many of these economies, the prospects to occupy a more central role in the global network are likely limited. LAC Trade Connectivity: Centrality in the World Trade Network 1/ 1/ Eigen centrality is standardized relative to the most central country in the world trade network and demeaned. Percentiles are based on the world distribution. Source: IMF Direction of Trade Statistics; IMF staff