Within the framework of the first half of 2023, exports of goods from Latin America and the Caribbean experienced a 2.7 % decrease compared to the same period of the previous year, according to the report ‘Monitor of Trade and Integration’ of the Inter-American Development Bank (IDB). This contraction is mainly attributed to the fall in prices. (-4.7 %) and moderation in the growth of exported quantities (2.9 %).
The IDB warns that the latest indicators point to a possible continuation of this downward trend in the coming months. Factors such as rising geopolitical conflicts, restrictive monetary policies and the slowdown in global growth following the post-pandemic recovery are contributing to these results.
The most notable ‘shocks’ that have negatively affected the region include Russia’s invasion of Ukraine, persistent inflation, and tightening monetary policy in advanced countries. In addition, the report highlights the urgency of addressing crucial challenges such as food security and climate change, which are likely to impact regional trade performance in the coming years.
Adverse climatic events have also had a significant impact on economic activity, particularly in the agricultural sectors of some countries in the region.
Despite a transitory export boost linked to China’s economic acceleration in early 2023, this effect faded over the year, revealing structural challenges that will have repercussions on the global economy and trade.
The report highlights that, while goods exports from Latin America and the Caribbean have contracted, the contraction is less pronounced than that of global trade as a whole. Sales of services also showed a slight slowdown.
As for the regions, the decrease in intraregional sales (-0.6 %) was smaller than in extraregional sales (-2.2 %) during the first half of 2023. The volume of shipments increased, mainly driven by Brazil (0.7 %) and Mexico (3.9 %), while several countries experienced notable contractions, such as Colombia (-14 %) and Ecuador (-10.1 %).
K. Tovar
Source: Bancaynegocios
(Reference image source: Unsplash+)
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