The value of goods exports from Latin America and the Caribbean increased at an estimated rate of 18,8% in 2022. In this period, the region's external sales consolidated the deceleration trend, after growing 27,8% in 2021, according to a report by the Inter-American Development Bank.
The performance of foreign sales was mainly due to the increase in export prices, while volumes lost momentum.
The growth rate of the region's exports is expected to decline in the coming months due to the downward trend in commodity prices, the consequences of the war in Ukraine, restrictive monetary policies to reduce inflation and the slowdown in global growth, according to the latest edition of the series. Estimates of Trade Trends in Latin America and the Caribbean.
“After a rapid recovery in 2021, following a series of global shocks, Latin American and Caribbean exports entered a phase of deceleration that will continue in 2023. Reversing this trend will be key to supporting the economic growth of the countries in the region,” said Paolo Giordano, Principal Economist of the IDB's Integration and Trade Sector and coordinator of the study.
Shipments to the United States boosted the region's external sales, with an estimated growth of 21,3% in 2022. Demand from Latin America and the Caribbean's other main partners experienced a marked slowdown compared to 2021 data. Sales to China grew by 2%; to the European Union, by 14%; and intraregional sales to Latin America and the Caribbean, by 25,6%.
Export prices
During 2022, prices of most commodities exported by Latin America and the Caribbean increased. Between January and November 2022, prices for oil (43%), coffee (29,1%), soybeans (13%) and sugar (5,5%) increased year-on-year. On the other hand, prices for iron ore and copper fell year-on-year by 28,9% and 4,9%, respectively.
According to the report, the shock of Russia's invasion of Ukraine "reinforced the increase in prices of the main commodities." But "in most cases the upward trend was reversed by mid-year in the face of the slowdown in global demand, low growth forecasts and the appreciation of the dollar."
Performance by subregions
Exports in South America expanded by an estimated 18,2% in 2022, after growing by 36% in 2021. The improvement in commodity prices explains most of the performance of this subregion, which benefited from the dynamism of intraregional trade and suffered particularly from the cooling of demand from China.
Mesoamerican exports increased by an estimated 18,8%, after having grown by 19,4% in 2021. Unlike the rest of the region, Mexico showed a continuous increase in the pace of expansion of its exports throughout the year, due to the increase in volumes sent to the United States. With a significant slowdown compared to the previous year (26,6%), Central American shipments expanded by 13,6%, thanks to the boost from intraregional and United States demand.
Caribbean exports increased at an estimated rate of 38% in 2022, after growing by 44,4% in 2021. The United States accounted for most of the increase, followed by the European Union.
On the other hand, total imports from Latin America and the Caribbean increased at an estimated rate of 26,3% in 2022, after expanding 37,4% in 2021.
Despite the drag of year-on-year growth, the region has settled into a deceleration trend destined to continue in 2023, according to the report prepared by the Integration and Trade Sector of the IDB and its Institute for the Integration of Latin America and the Caribbean (INTAL). (Estimates of trade trends in Latin America and the Caribbean)
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
