The dollar value of the exports of goods Latin America and the Caribbean fell 2.2% during 2023 after two years of increase, according to a report published by the Inter-American Development Bank (IDB), with Uruguay on the podium of the countries with the greatest setbacks.
The report highlighted that, although the drop in loan prices was general, it was more noticeable in South America, probably due to the impact of the drought about him agricultural sector.
The decrease in the value of exports was 19% year-on-year on Uruguayan soil, a percentage only surpassed by Bolivia, with 21% and Argentina, first in the ranking, with a decline of 25.3%.
It is worth noting that the figures come after two consecutive increases in external sales of the region, which achieved an improvement of 17% in 2022 and 28% in 2021.
The main economist of the Organization’s Integration and Trade Sector, Paolo Giordano, explained that “after two years of expansion, within the framework of the recovery from the shock caused by the pandemic, “Exports from Latin America and the Caribbean entered a contraction phase in 2023.”
What were the products whose price dropped the most?
According to the report of the IDB, The prices of the main basic products that are exported by the region fell in 2023, including an 8.6% decrease in the soy, the one that had the most impact on Uruguay. In turn, the Petroleum fell 16.7%, the copper 3.6% and iron 0.9%, while the sugar improved by 27.2% and the coffee It kept stable.
This downward trend will continue due to “restrictive monetary policies to contain the inflation”, imposed by the governments of the region, added to the war in Ukraine and the escalation of the conflict in the Gaza Strip, anticipated the report.
“A context of growing geoeconomic fragmentation limits economic growth and, therefore, the possibilities of expanding demand for exports of the region,” said the IDB in the report.
Giordano stated that “to mitigate the impact of the fall in prices, demand and climate change, It is important that countries implement policies that allow them to diversify their exports and also update quality control standards, environmental certification seals and encourage crops resistant to changes and innovative irrigation systems, among other things.”