MEXICO CITY, Jan 30 (Reuters) - Exports from Latin American and Caribbean countries contracted last year after two years of strong post-pandemic growth, according to a report published on Tuesday by the Inter-American Development Bank (IDB), which warned of further decline.
The 2.2% decline registered in 2023 resulted from both sliding prices of key raw materials and less volumes being shipped abroad, the report said, and marks a stark change from the 28% and 17% increases clocked in 2021 and 2022 respectively.
"Exports from Latin America and the Caribbean entered a contraction phase in 2023, after two years of growth in context of the recovery from the pandemic shock," senior IDB economist Paolo Giordano said.
Regional outlook is also "biased to the downside," the report said, noting that its chief indicator does not suggest a changing trend for the first six months of 2024.
The Caribbean was especially hard hit, with a 32% decline in exports while South American exports slid over 5%, as raw materials sold for lower prices overseas.
Most of the prices of the main commodities exported by Latin America and the Caribbean fell compared to 2022, particularly oil, which tumbled 16.7% year-on-year, soybeans which slumped down 8.6% and copper, which shrunk by 3.6%.
Mexico, however, proved to be an outlier as it shipped more goods to the neighboring United States, the IDB said, helping push its own exports up by almost 3%. (Reporting by Aida Pelaez-Fernandez; Writing by Sarah Morland; Editing by Sandra Maler)
