The value of Latin America’s goods exports expanded at an annual rate of 1.3% in the first quarter of 2024, after falling in 2023, according to a new report from the Inter-American Development Bank (IDB).
The boost in shipments from the region responded mainly to the growth in volumes exported by South America according to the latest update of Estimates of Trade Trends in Latin America and the Caribbean, which includes data accumulated as of the first quarter of this year. The value of the region’s exports had fallen by 1.3% in 2023.
“The outlook has improved significantly. Looking ahead, the balance of risks for the region’s trade performance appears neutral, although the forecast points to a path of moderate growth and a high level of uncertainty,” said Paolo Giordano, Principal Economist of the Integration and Trade Sector. of the IDB and coordinator of the report.
The evolution of export performance varied at the subregional level. South America’s external sales entered positive territory despite the fall in commodity prices. Exports from Mexico slowed and the expansion was driven solely by prices, while shipments from Central America deepened the decline that began the previous year.
IDB: export prices in Latin America and the Caribbean
The prices of the main basic products exported by the region showed an increase in volatility and divergent product trends.
In the first quarter of 2024, the year-on-year rates of change were positive for coffee (36.9%), sugar (8.5%), iron ore (1.9%) and oil (1.0 %). For their part, soybean and copper prices presented a negative interannual variation (-20.9% and -5.3%, respectively).
The report anticipates that, although prices are at historically high values, “they are part of a downward trend that is expected to continue in the coming quarters, although with less intensity than that observed in the last year.”
IDB: performance by subregions in Latam
It is estimated that exports of South America increased 1.9% year-on-year in the first quarter of 2024, after having fallen 4.5% on average in 2023. The reversal in commodity prices weakened performance in this subregion, while volumes shipped increased significantly .
The exports of Mesoamerica recorded a slowdown with an estimated increase of 0.7% year-on-year in the first quarter of 2024, after growing 2.3% on average in 2023. Mexico marked an increase in external sales of 1.7% year-on-year. For their part, shipments of Central America they contracted 7.1%.
The region’s total imports, whose value had contracted 6.3% in 2023, continued to fall in the first quarter of 2024 (-2.1% year-on-year), although at a slower pace.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
