C.  Upside and downside risks (risk factors)  As described in the October 2014 Outlook Report, the upside and downside risks to the Bank’s baseline scenario of the outlook for economic activity include (1) developments in exports, (2) the effects of the consumption tax hikes, (3) firms’ and households’ mediumto long-term growth expectations, and (4) fiscal sustainability in the medium to long term.
Many countries that once closed themselves to the outside world are now actively engaged in the global economy. Notable examples are China, India, and, within the Americas, Chile.