In an international scenario marked by uncertainty, with the United States, China and Europe going through a difficult economic period, Latin America navigated 2022 by resisting the attacks from abroad and taking charge of its own internal challenges. In this context, a new report by the Economic Commission for Latin America and the Caribbean (ECLAC) estimated that the value of regional goods exports grew 20% in 2022, driven by a 14% rise in prices and a 6% expansion in export volume.
In the report “Latin America and the Caribbean International Trade Outlook 2022«, published last week (10.01.2023) the Commission also indicates that the value of regional imports of goods increased by 24%. As with exports, the bulk of the increase in the value of regional imports is due to the price component.
According to the report, regional exports of goods had their second year of double-digit growth in 2022, after growing 27% the previous year. However, as in 2021, the expansion in shipments was driven mainly by exogenous factors (the rise in raw material prices, particularly fuels), and not by the ability to increase export volume or diversify the regional export offer towards new sectors.
trade in services
In contrast to the slowdown in trade in goods, trade in services in the region shows a significant recuperación, growing 45% in the first half of 2022 compared to the same period in 2021. This is mainly due to the reactivation of the , followed by the other services category, which includes the so-called modern services.
The report warns that in a context marked by the conflict in Ukraine, high inflation, lower growth, geopolitical tensions and the persistence of the pandemic, world trade suffered a sharp slowdown in 2022, which will worsen in 2023: after expanding 9,8% in 2021, the volume of world trade in goods is projected to grow 3,5% in 2022 and grow just 1% in 2023.
Main partners
Among the region's main trading partners, exports to the region are estimated to be la European Union were the most dynamic in 2022, with their value growing by 26%. For the first time since 2015, exports to China were the least dynamic, growing by only 8%. Meanwhile, it is estimated that the Intraregional trade expanded by 22%, which is good news for the region's manufacturing exports.
The most unfavorable thing for 25 of the 33 countries in the region is that they maintain a negative imbalance because the prices of their imports, particularly fuels, are well above what they sell abroad.
At the global level, ECLAC noted that trade suffered a sharp slowdown in 2022 due to the effects of the persistent Covid-19 pandemic, the conflict in Eastern Europe, high inflation and geopolitical tensions.
Regional integration
In this global context in which the main economic powers seek to advance their own processes of commercial and productive regionalization, it is essential to once again promote the project of regional economic integration.
In this regard, ECLAC noted that the Covid-19 pandemic and the conflict in Ukraine have highlighted the “high regional dependence on external supplies of strategic products such as medicines, medical devices and fertilizers.”
In this regard, the United Nations regional commission urged “revitalize regional integration and implement productive development policies to boost manufacturing exports.” To do this, “it is necessary to move towards a broad and stable regional market through initiatives for regulatory convergence, trade facilitation, strategic use of public procurement and improved connectivity,” he stressed.
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