WASHINGTON, USA – 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, a report published by the Inter-American Development Bank (IDB).
Drawing on data for 2024, the report attributes the region’s export growth to higher shipment volumes, as prices stagnated.
While the trade outlook for Latin America and the Caribbean has improved significantly over the past year, with the region’s 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 of Latin America and the Caribbean. This year’s trade growth was spearheaded by South America, where export volumes surged. The Caribbean’s performance also rallied. Mexico saw a modest acceleration in export growth, due to improved prices. In contrast, exports from Central America remained stagnant.
Export prices
The prices of Latin America and the Caribbean’s main export commodities declined steadily in 2024, with the exception of coffee and copper. Coffee prices surged by 57.7 percent year-on-year, while those of copper grew by 9.4 percent. In contrast, there were significant year-on-year drops for soybeans (-22.1%), sugar (-13.7%), iron (-9.2%), and oil (-2.7%).
The report expects this downward trend to continue into the coming quarters, as global markets remain highly volatile.
Performance by subregion
South America’s exports grew by an estimated 4.0 percent in 2024, after falling by 4.4 percent in 2023. The driving force behind this increase was export volumes, which surged from 3.6 percent growth in 2023 to 6.9 percent in 2024, amid ongoing price declines.
Exports from Mesoamerica increased by an estimated 3.5 percent in 2024, building on the previous year’s growth. This outcome was almost entirely underpinned by Mexico, which experienced 4.0 percent export growth. In contrast, exports from Central America stagnated in 2024 (0.1%).
Exports from the Caribbean 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 (3.2%) after a sharp decline in 2023 (-6.8%).
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