According to the Inter-American Development Bank (IDB) report, the value of the region's exports had fallen by 1.3% in 2023.
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 to the first quarter of this year. The value of the region's exports had fallen by 1.3% in 2023.
The region's total imports, whose value had contracted by 6.3% in 2023, continued to fall in the first quarter of 2024 (-2.1% year-on-year), although at a slower pace.
According to the principal economist of the IDB's Integration and Trade Sector and coordinator of the report, Paolo Giordano, the outlook has improved "notably." "Looking ahead, the balance of risks for the region's trade performance appears neutral, although forecasts point to a path of moderate growth and a high level of uncertainty," he noted.
The evolution of export results varied at the subregional level. South America's external sales entered positive territory despite the drop in raw material 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.
EXPORT PRICES
The prices of the main commodities exported by the region showed greater volatility and divergent trends by product.
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.
South American exports are estimated to have increased by 1.9% year-on-year in the first quarter of 2024, after having fallen by 4.5% on average in 2023. The reversal in raw material prices weakened the performance of this subregion, while volumes shipped increased significantly. .
Mesoamerican exports registered 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 saw an increase in external sales of 1.7% year-on-year. For their part, shipments from Central America contracted 7.1%.
