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2013 has been a challenging year for advanced economies, in particular those of the G7. Despite the USA’s fiscal woes, North America (USA and Canada) has turned a corner in the second half of 2013 with unemployment falling, consumer confidence set to rise and the fastest real GDP growth of the G7 economies. A weak dollar is a concern as it may dampen demand for imports in the world’s largest consumer market, but on the flipside it will make exports cheaper and reduce the trade deficit.

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