Export figures from Latin America and the Caribbean have taken a hit in the first half of 2023, registering a substantial decline of nearly three per cent.
The Inter-American Development Bank (IDB), in its recently unveiled Trade and Integration Monitor 2023, has shed light on this disconcerting trend.
Recovery stumbles after strong gains
It noted that while the region’s exports initially rebounded following the tumultuous pandemic period, they have since faltered at a pace faster than anticipated.
The value of the region’s goods exports grew by 2.7 per cent for the first half of the year, versus a similar period in 2022.
This stands in stark contrast to the robust 28 percent full-year growth observed in 2021 and the 17 percent recorded in 2022.
Falling prices and weakened volumes
One of the key factors contributing to this decline, as reported by the IDB, is a 4.7 per cent drop in prices, and a more subdued expansion in export volumes when compared to the preceding year.
The region’s growth in export volumes was mainly driven by Brazil and Mexico, whereas volumes contracted in several other countries.
