Value of exported goods from Caribbean and Latin America has grown by an estimated rate of 2.9% in the first quarter of 2023, in comparison to 16.4% last year, a study by the inter-American development bank suggest.
The latest edition of the Trade Trends Estimate report by the IDB indicates, due to weaker export volumes and lower commodity prices, a significant reduction in exports can be observed. However, shows better trade performance than the world average.
The report states, looking into the future, the scales are tipping to the downside due to effects surrounding the Ukraine war, monetary policies tightening on global growth, the downward trend in commodity prices and the reopening of the Chinese economy.
The coordinator of the publication and principal economist of the IBD’s integrated and trade sector, Paolo Giordauo informs, the export slowdown experienced by the Caribbean and Latin America, is foreseen to maintain it’s stagnant growth into the next quarter, with stability in the second half of the year.
He added investment policies that enhanced competitive factor to foreign markets may prove to be a key element in economic recovery. The report indicates data of 20 countries in the Caribbean and Latin America, including export performances.
The Caribbean countries observed a variance in exports figures, the first quarter Barbados recorded a growth rate of 6.3% against last year of 3.4%. Belize experienced a negative 20.6% growth against 10.8% last year. An 89.5% increase in exports figures registered by Guyana against 24.3% last year. A 28.4% growth recorded by suriname and Trinidad and Tobago against 13.2 and 46.2% respectively last year. While Jamaica recorded no figures.
Although the slowdown affected the region as a whole, but South American economies was especially pronounced as the effect of falling prices were more noticeable.
The price volatility of Caribbean and Latin American main export commodities was recorded between January and April 2023. A negative growth was recorded for prices of oil, iron ore, coffee, soy beans and copper. While sugar prices increase by 15.1%.
The forecast also indicated that, certain factors such as, the value of the dollar and interest rates will have a direct impact on commodity prices.
