January 16, 2025
The value of exports from Latin America and the Caribbean grew by an estimated 4.1 percent in 2024, recovering from a 1.6 percent decline in 2023, according to the latest Trade Trends Estimates for Latin America and the Caribbean, published by the Inter-American Development Bank (IDB).
The report attributes this growth to higher shipment volumes, as prices remained stagnant. While the trade outlook for the region has improved significantly over the past year, with exports exiting a contractionary phase, the report cautions that there are still no signs of sustained growth.
“The risks to regional trade remain balanced, but projections point to only modest growth given the prevailing uncertainty in the global economy,” said Paolo Giordano, principal economist at the IDB’s productivity, trade, and innovation sector, who coordinated the report. “To ensure foreign trade continues to make a meaningful contribution to economic growth, the region needs to prioritize reforms and investments that boost productivity, facilitate trade, and attract investment.”
Export performance varied significantly across the subregions. South America led the way with a surge in export volumes, while the Caribbean also saw a significant rally. Mexico experienced modest export growth due to improved prices, whereas Central America’s exports remained stagnant.
Export prices for the region’s main commodities declined steadily in 2024, except for coffee and copper. Coffee prices surged by 57.7 percent year-on-year, and copper prices grew by 9.4 percent. In contrast, soybeans, sugar, iron, and oil saw significant year-on-year price drops.
The report expects this downward trend to continue into the coming quarters, as global markets remain highly volatile.
Performance by Subregion:
- South America: Exports grew by an estimated 4.0 percent in 2024, driven by a surge in export volumes from 3.6 percent in 2023 to 6.9 percent in 2024, despite ongoing price declines.
- Mesoamerica: Exports increased by an estimated 3.5 percent in 2024, largely due to Mexico’s 4.0 percent export growth. Central America’s exports stagnated at 0.1 percent.
- Caribbean: Exports rallied significantly, growing by 18.3 percent in 2024 after a 14.9 percent drop in 2023.
The region’s total imports also rebounded, showing modest growth of 3.2 percent after a sharp decline of 6.8 percent in 2023.
Source: (Caribbean News Global)
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